[2026 Parliamentary Audit] Who's to Blame for Seoul Metro Area Home Prices? Ruling Party: "Supply Shortage"; Opposition: "Failed Lending Restrictions"

Democrats: "Housing supply plunged under the Yoon administration and Oh Sehoon's Seoul government"
PPP: "Lending and multi-homeowner regulations must be revised"
Kim Eunhye releases Moon administration's "Real Estate Expert Status" document... "Ille

Yonhap News Agency

The ruling and opposition parties clashed head-on on October 7 over who was responsible for rising home prices in the Seoul metropolitan area during a parliamentary audit of the Ministry of Land, Infrastructure and Transport by the National Assembly’s Land, Infrastructure and Transport Committee. They also sparred over allegations of “surveillance of civilians,” claiming that the ministry under the Moon Jaein administration had collected information on private individuals critical of its real estate policies.

The Democratic Party of Korea argued that a lack of housing supply during the Yoon Sukyeol administration and Seoul Mayor Oh Sehoon’s tenure had fueled rising home prices. Rep. Jang Jongtae of the Democratic Party cited a 6.5% increase in prices for existing homes in the Seoul metropolitan area that were more than 20 years old, saying, “Expectations for reconstruction and redevelopment have pushed up prices.” He criticized the Oh Sehoon administration in Seoul, saying, “It supplied expectations of higher home prices, not homes.”

Rep. Kim Namgeun, also of the Democratic Party, said housing supply from 2022 to 2024 stood at just 58% of the average for the previous 10 years, arguing that the decline had led to instability in the monthly and deposit-based rental markets.

The People Power Party countered that the current administration’s lending restrictions and regulations on multiple-home ownership had instead heightened market instability. Rep. Jeong Huiyong of the People Power Party called for a sweeping revision of lending restrictions, saying, “Regulations meant to protect ordinary people are hurting only ordinary people.” Rep. Jeong Dongman also argued that the policy approach to lending and multiple-home ownership restrictions, as well as land transaction permit zones, should be changed.

The parties also clashed over a document titled “Status of Real Estate Experts,” believed to have been compiled under the Moon Jaein administration. Rep. Kim Eunhye of the People Power Party presented the document, which is believed to have been compiled in November 2019, and called it “clearly illegal surveillance and real estate police-state rule.” According to Kim, the document contained remarks and real estate acquisition records of 19 private individuals, including YouTubers and businesspeople who had criticized the government’s real estate policies at the time.

Rep. Bok Kiwang of the Democratic Party countered, “They are turning the audit into a venue for political strife by presenting material of unclear origin as fact.” Rep. Kim Mia of the People Power Party responded that it was inappropriate to dismiss the allegations as political strife.

Criticism of the current administration’s real estate policies also came from within the ruling party. Rep. Kim Jeongjae of the People Power Party said a “triple surge” was underway in Seoul’s housing market, with sale prices and both monthly and deposit-based rents rising at the same time, and called the situation “disaster-level.” Rep. Bu Seungchan of the Democratic Party also questioned whether the government’s expansion of purchase-and-rental programs for non-apartment housing adequately reflected the actual housing preferences of young people and newlyweds.

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