[2026 National Assembly Audit] Hong Jiseon: "Preparing Measures for Housing Price Crashes and Surges... Jeonse Woes Due to Insufficient Supply"

"Jeonse and monthly rent prices surge due to supply shortages
Listings decline even in unregulated areas"

Hong Jiseon, Minister of Land, Infrastructure and Transport, said the government was preparing measures to address recent sharp increases in apartment prices in the Seoul metropolitan area, adding that it was “working on responses to various market changes, including sharp declines and surges.”

Hong made the remarks on October 23 while attending a comprehensive audit of the Ministry of Land, Infrastructure and Transport by the National Assembly’s Land, Infrastructure and Transport Committee. In response to a question from Kang Dae-sik of the People Power Party about whether the government was working on measures to address rising housing prices in the Seoul metropolitan area, she said, “We are working on them now.”

Minister of Land, Infrastructure and Transport Hong Jiseon answers questions from committee members during a comprehensive audit by the National Assembly's Land, Infrastructure and Transport Committee on the 23rd. Yonhap News

On market conditions in which jeonse and monthly rent prices are rising and jeonse listings are declining, Hong said the cause was insufficient supply, not government regulations. “Regulated areas and land transaction permit zones are limited to Seoul and parts of Gyeonggi Province. The problem is that jeonse and monthly rent listings are also declining, and monthly rents are rising, in regions without such regulations,” she said. “The fundamental solution to the jeonse and monthly rent shortage is to address supply that is falling short of demand.”

At an earlier National Assembly audit on October 7, Hong said she believed there was demand for extending the land transaction permit system and that the government would review whether to extend it after assessing market conditions.

Asked about criticism that confidence in the government’s real estate policies was declining because housing supply plans were falling short of their targets, she said, “It seems that we can achieve a certain level of the supply planned by the public sector, but the private sector is not meeting its targets properly.”

At a regular housing supply briefing on October 16, the Ministry of Land, Infrastructure and Transport projected that housing starts in the Seoul metropolitan area would total between 18,000 and 235,000 units this year. That would amount to 81–88% of the 268,000-unit target set at the start of the year.

Hong said, “We have now drawn up a five-year plan” for housing supply, adding, “We will do our utmost to make up the shortfall next year.”

Meanwhile, the audit also heard calls to revise the special apartment supply application system for medalists at international arts and sports competitions and workers at overseas construction sites. Independent lawmaker Jang Kyung-tae said, “As many as 10% of the athletes who received special supply points were awarded exactly one point for winning at least one medal at competitions such as the Universiade and the Military World Games, which are considered lower-tier competitions under the rules.”

Hong said, “We will review once again whether improvements are needed to the special supply system for outstanding athletes and the special supply system for overseas construction workers.” She added, “We will conduct additional checks on people recommended by individual associations and other bodies, and rather than relying solely on those recommending organizations, we will devise a way to carry out our own checks.”

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