Lawmaker Park Ji-won says he can't find jeonse as his apartment faces reconstruction

Democratic Party of Korea lawmaker Park Ji-won said Tuesday that "there is no royal road in real estate policy" and that the only answer is to "just build."

Speaking on BBS Radio's "Jeong Hye-seung's Morning Journal," Park said he had recently met with the president and shared his views on housing policy. "I told him: 'There is no royal road in real estate policy. It would be best not to touch owner-occupied, single-home households — but the problem is the prized single unit. Even one home has shot up so much in value that people should at least be paying a property holding tax,'" he said.

Park added that property holding taxes in Korea were far lower than what he had seen while living in the United States.

He went on to say the only solution was to "just build," noting that Land, Infrastructure and Transport Minister Kim Yun-deok had said Monday that greenbelt land should be released for construction if necessary. "Just build," Park repeated for emphasis.

Park said he hoped the government would build more public rental housing, and disclosed that his own situation illustrated the problem. "My apartment is being reconstructed and I've been told to move out by next March. There's no jeonse available. It's serious," he said.

Park resides in the Hanyang Apartments in Yeouido-dong, Yeongdeungpo-gu, Seoul, a complex completed in 1975.

Meanwhile, Minister Kim spoke Monday at a national public forum on real estate policy held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, chaired by Prime Minister Han Seong-sook. "Since becoming land minister, I have developed a strong desire to build homes even if it means releasing greenbelt land," Kim said.

Kim said he "in principle agrees with the view that opposes releasing greenbelt land for residential development," but added that he was "actively considering the direction of supplying housing even if it means partially releasing greenbelt areas where necessary."

On expanding housing supply by raising floor-area ratios for private redevelopment and reconstruction projects, Kim said he was "taking a cautious stance, given concerns that the demolition of existing homes during the redevelopment process could create a supply gap and drive up housing prices."

That position aligns with the reserved stance President Lee Jae Myung took on reconstruction and redevelopment at a national real estate policy forum on Thursday.

Lee said "there seems to be debate over whether reconstruction and redevelopment can be seen as having a meaningful effect on new housing supply," indicating he did not believe such projects significantly increase the housing stock.

"In the case of reconstruction, the number of units sometimes increases, but the units also tend to get larger, so the net gain does not appear to be very significant," Lee said. "With redevelopment, it seems the total number of occupied households typically decreases."

He added that while living conditions improve and higher-quality homes are supplied, a large number of existing residents are forced to leave, meaning that in densely populated areas the total number of households can actually decline.