Land minister vows greenbelt releases, non-apartment supply push

Minister of Land, Infrastructure and Transport Kim Yun-deok said Monday the government would soon unveil measures to boost non-apartment housing supply and diversify corporate rental operators, adding that partial greenbelt releases would be actively considered if needed to expand housing supply.

Speaking at a national public forum on real estate policy held at the Korea Chamber of Commerce and Industry, chaired by Prime Minister Han Seong-sook, Kim said he fully agreed with the push to revitalize non-apartment housing. "We are working to increase non-apartment supply and diversify corporate rental operators so that we can build a solid supply foundation," he said.

He added that the ministry was in ongoing talks with the Financial Services Commission on financing support measures and expected to reach a conclusion soon.

On greenbelt releases, Kim said conservation was the right principle in general, but his thinking had shifted since taking office. "Since becoming land minister, I have been actively considering whether to release some areas in order to deliver housing," he said.

Kim identified young people and newlyweds as the top priority of the government's real estate policy.

"The ultimate goal is to help young people achieve housing stability and build a housing ladder from there," he said. "If non-apartment supply is revitalized, the number of spaces available for single-person households and young people will also grow. Real estate policy starts with young people and newlyweds."

Pushing back against criticism that the government had been passive on private housing supply, Kim said that characterization was "not true at all."

He said the ministry recognized that inadequate private supply would be a problem, and was pursuing measures including faster permitting and converting knowledge-industry centers and commercial properties into housing.

However, Kim said the ministry was taking a cautious stance on raising floor-area ratios for private redevelopment projects, citing concerns that demolition of existing homes during the process could create supply gaps and drive up prices.

On the construction industry's calls for financial support, Kim said the ministry fully understood the need to support housing construction financing. "We need to resolve construction financing issues in some form to actually deliver new housing supply, and we are continuing to discuss this with the Financial Services Commission," he said.