Minister Kim Yun-deok of Ministry of Land, Infrastructure and Transport Considers Unprecedented 'Green Belt Release'... Driving Non-Apartment Housing Supply

고진아 Reporter

Kim Yoon-deok, Minister of Land, Infrastructure and Transport, made a bold statement today (27th) that he is "actively considering partial deregulation of the Greenbelt if necessary" to expand housing supply, and simultaneously announced plans for multiple measures to revitalize non-apartment housing and stabilize housing for youth, signaling a major impact on the real estate market.

Minister Kim made these remarks at a national real estate policy debate held at the Korea Chamber of Commerce and Industry International Conference Hall, presided over by Prime Minister Han Sung-soo. He stated firmly that he "fully agrees with promoting non-apartment housing," and emphasized that the government will soon develop measures to revitalize non-apartment supply and diversify corporate rental housing entities. This represents a shift from the existing principle of Greenbelt preservation, interpreted as reflecting the government's strong determination to address the housing supply shortage.

Minister Kim presented the ultimate goal of real estate policy as "enabling young people to achieve housing stability and build a housing ladder." He clearly indicated that the government is actively reviewing non-apartment policies to reduce the housing burden for single-person households and younger age groups. He repeatedly stressed that "real estate policy should start with youth and newlyweds," signaling his commitment to focusing on developing practical housing stability measures for them.

Kim Yoon-deok of Ministry of Land, Infrastructure - Boldly Considering 'Greenbelt Deregulation'...Strengthening Non-Apartment Supply
[Photo=Yonhapnews]

However, regarding the increase in floor area ratio for private redevelopment projects, he took a cautious stance. Minister Kim drew a line, stating he takes a "cautious position" due to concerns that raising the floor area ratio could lead to supply gaps and rising housing prices. This interpretation reflects his intention to carefully monitor potential market side effects in his approach to private redevelopment projects, which account for a large portion of housing supply.

Regarding the construction industry's requests for financial support, he stated, "I empathize with the necessity but am also concerned about potential side effects." Nevertheless, he added that the government continues to consult with the Financial Services Commission on resolving non-apartment financing support and construction finance issues. In particular, by suggesting that "conclusions could be reached soon," he raised expectations for preparing financial support measures.

As Minister Kim Yoon-deok has demonstrated strong determination to expand supply by even considering the Greenbelt deregulation option, attention is focused on how the revitalization of non-apartment housing and preparation of financial support measures will impact the real estate market going forward. Particular interest is being paid to whether the government's policy prioritizing housing stability for youth will translate into tangible results, and how balance will be struck with private redevelopment projects.

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