Minister Kim Yoon-duk: "Young People and Newlyweds Are Top Priority in Real Estate Policy... Pre-Sale Promises Will Be Kept"

National Real Estate Policy Forum Held on the 27th
Young People and Newlyweds Express Challenges in Securing Housing

The government has reaffirmed its housing policy stance, placing young people and newlyweds as its top priority and reiterated its commitment to fulfilling previous promises to advance-sale applicants without delay.

Participants raise their hands to ask questions at the National Real Estate Policy Forum held on the 27th at the International Conference Hall of the Korean Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by Yonhap News Agency

At the 'National Real Estate Policy Forum' held at the Korean Chamber of Commerce and Industry in Jung-gu, Seoul, on July 27 in the afternoon, presided over by Prime Minister Han Sung-sook, Minister of Land, Infrastructure and Transport Kim Yoon-duk said, "As a father of the younger generation, I am giving this a lot of thought," expressing his determination to resolve housing issues for young people and newlyweds.

Chae-rin Han, who is about to enter graduate school in Seoul, asked whether the government’s youth housing policy is focused on providing stable rental housing or aims to establish a housing ladder that leads to ownership. She also asked how the government plans to create a housing system that allows young people to plan for their lives 10-20 years ahead.

Minister Kim responded, "The ultimate goal is to ensure stable housing for young people and to create a housing ladder for them."

Iljin Cho, CEO of Urban Story, pointed out, "The government has improved the system to allow knowledge industry centers to be converted into residential officetels that can be offered as LH public rental housing for young people and newlyweds." He emphasized that, "In order for policy to translate into actual housing supply, it is crucial to drastically shorten the approval process."

He continued, "Under the current procedures, it takes more than a year just to get approvals, but if the integrated review fast track and LH purchase review are conducted simultaneously, the approval process can be completed in three to four months, construction can begin immediately, and public housing for young people and newlyweds could be ready within six months."

Minister Kim stressed, "Under the Lee Jae-myung administration, the number one priority in real estate policy is young people and newlyweds. The President has given very strong instructions to ensure that housing policy, and indeed all issues affecting young people, are addressed at the government level."

He added, "As Minister of Land, Infrastructure and Transport, I am immediately addressing heartbreaking situations, such as people delaying marriage registration because they experience additional disadvantages after getting married."

Minister Kim went on to say, "I am fully aware of the seriousness of the issues young people are facing," promising, "We are preparing in various ways and will soon propose several plans as a core pillar of policies for youth."

Prime Minister Han Sung-sook also remarked, "We have identified about 12 cases of so-called 'marriage penalty' through a comprehensive survey and will coordinate with relevant ministries to address them. We will look closely into the marriage penalty and youth housing environment and set a timetable to provide detailed answers soon."

Kim Young-do, Senior Research Fellow at the Korea Institute of Finance and presenter of the day, suggested expanding policy mortgages and increasing housing loan support for young people through financial institutions as measures to support youth. He added, "The biggest issue regarding consideration for the younger generation is how to accurately identify real demand. As one panelist said at the recent financial forum, 'Assessing real demand is almost an art form.' The more criteria we set, the greater the institutional complexity and technical challenges become."

He further said, "When it comes to youth housing demand, there is both demand for renting and for buying, and deciding which to prioritize is a matter of policy choice."

Meanwhile, Minister Kim expressed his understanding of the frustration experienced by advance-sale applicants and committed to fulfilling the government's promises.

Manhwan Ha, chair of the New Home Sharing Selection Advance Sale Countermeasures Committee, said, "Advance-sale applicants are not speculative buyers, but real end-users who trusted the government, maintained their non-homeowner status, and complied with residency requirements, limiting their other options. Please implement what was originally promised, including fixed rates, the maximum 40-year term, an 80 percent LTV (loan-to-value) ratio, and confirm contract protection measures officially before contracting."

Minister Kim responded, "These are directly ordered by the President. We have clearly promised advance-sale applicants what was previously agreed, and I will make sure to resolve any issues related to ambiguous points so that they do not feel frustrated."

He added, "It would be beneficial for advance-sale applicants and the Ministry of Land to have a meeting. While the general direction is set, if any concrete adjustments are needed, we will make them as necessary."

This content was produced with the assistance of AI translation services.