Housing nominee Hong Ji-seon set to accelerate 'basic housing' push

The nomination of Hong Ji-seon, former second vice minister of land, infrastructure and transport, as the new minister nominee has drawn attention to whether the government will expand housing supply plans rooted in President Lee Jae Myung's signature "basic housing" concept — a policy he championed during his time as Gyeonggi Province governor. With key housing agency heads, including those at Korea Land and Housing Corporation (LH), now drawn from what observers call the "Gyeonggi line," analysts say President Lee may have assembled his envisioned "one team" for housing supply.

On Monday, Hong spoke to reporters on her first day at the office since her nomination, saying she would "swiftly supply quality housing in preferred locations" and pledged to "pay close attention to housing stability for young people and newlyweds."

Hong is the first local government official to be nominated as minister, and her selection was credited to her extensive experience in housing roles in Gyeonggi Province. Presidential Chief of Staff Kang Hoon-sik said Sunday that she had "overseen the entire process from designing housing supply to on-the-ground implementation as head of the urban housing division in Gyeonggi Province, translating that work into tangible results for residential stability."

Before being named second vice minister of land, infrastructure and transport earlier this year, Hong spent about two years as deputy mayor of Namyangju, overseeing city administration including housing supply projects. She also has experience advancing third-generation new town development, the extension of the Byeollae Line, and road construction projects including transit transfer centers.

The project expected to gain momentum first is the Namyangju housing supply plan included in the Aug. 13 real estate package. The Ministry of Land, Infrastructure and Transport announced it would apply a "fastest ground-breaking model" for public housing sites to break ground on 21,700 units in the Namyangju area by the first half of 2030, alongside a metropolitan transportation improvement plan. The Namyangju Wangsuk district — slated for about 80,000 units, the largest volume among third-generation new towns — has also been flagged as an urgent priority after years of delayed progress.

Some analysts expect Hong's appointment to bring a broad shift in national housing policy toward the "basic housing" framework, given that she helped design the concept during President Lee's tenure as Gyeonggi governor. On Sunday, President Lee posted on X that he had "directed preparations for a system to bulk-purchase homes below a certain standard for public housing stock, in anticipation of a housing price collapse triggered by early mass supply, suppression of speculative demand, and a surge in loan defaults and foreclosures driven by high interest rates."

The directive aligns with the "basic housing" policy, under which President Lee expanded the concept of public rental housing into a universal model open to any non-homeowner. Analysts say that if Hong is confirmed as minister, she would serve as the control tower for housing initiatives, including public rental expansion through bulk purchases.

The government's plan to supply housing in Yongsan Park in Seoul — currently the subject of a tug-of-war with the Seoul Metropolitan Government — is also likely to proceed in line with the administration's policy of offering public sale and rental units to non-homeowners. The Ministry of Land, Infrastructure and Transport has maintained its position that housing for young people and newlyweds should be built on degraded green spaces within the main Yongsan Park site, such as areas formerly used as officer quarters.

On her way into the office Monday, Hong said she had "ample experience seeing how central policy comes down to local governments and how it actually works on the ground," adding that she would "work toward an agreement with the Seoul Metropolitan Government through prior consultation so that it can be implemented in practice."

Also notable is that the heads of major agencies responsible for real estate policy are, one after another, figures who helped drive housing and development policy alongside President Lee during his time as Gyeonggi governor. Korea Real Estate Board President Lee Heon-uk served as president of Gyeonggi Housing and Urban Development Corporation during Lee's governorship, while LH President Lee Seong-hun is a former career official who served as head of Gyeonggi Province's construction bureau.

A Ministry of Land, Infrastructure and Transport official said housing was "by far" Hong's top priority, adding that "it is highly unusual for the vice minister in charge of transportation to be nominated as minister — the message is to use her experience working hand in hand with President Lee to accelerate housing supply."