Hong Ji-sun vows to supply housing 'until the market feels it's enough'

Hong Ji-sun, the nominee for minister of land, infrastructure and transport, has identified stabilizing the housing market through increased supply as her top priority if confirmed. She said she would draw on her experience in local government to accelerate permit approvals and sharpen the ministry's ability to deliver on policy. She also indicated she would carry forward the "basic housing" initiative she championed as head of the urban housing division in Gyeonggi Province.

Hong made the remarks in her opening statement at a confirmation hearing held Wednesday at the National Assembly.

"I will mobilize the full capacity of both the public and private sectors to push forward housing supply swiftly — until people in the places they want to live feel the market has enough," she said. "I will strengthen the housing ladder for the younger generation, including young people and newlyweds, and provide robust protection for vulnerable groups such as the elderly and victims of jeonse fraud," or rental deposit fraud.

Alongside housing supply, Hong named balanced regional development as a key priority. "Balanced development is a matter of national survival," she said, adding that she would support mega-projects to establish advanced industrial hubs in the regions and continue to develop the administrative capital and Saemangeum as core regional anchors.

She also pledged a successful second round of public institution relocations, saying she would "engage in sufficient communication with the institutions and local governments and link them organically with regional industries to prime the pump for growth." She further listed expanding road and rail networks, nurturing future mobility industries such as autonomous driving and urban air mobility, and raising the value-added profile of the construction sector among her major policy goals.

In written responses submitted ahead of the hearing, Hong left open the possibility of using Yongsan Park as a concrete supply option to stabilize Seoul's housing market. Amid ongoing consultations with the Seoul Metropolitan Government over housing supply measures, she described Yongsan Park as "a place with great potential to quickly deliver a substantial amount of residential space for the younger generation and future generations," adding that "while the park's core areas should be preserved, it is necessary to examine the possibility of housing supply focused on peripheral spaces."

Hong also stressed the need for cooperation with Seoul. "Both the central and local governments share the common goals of housing stability and improved transport access," she said. "Since housing supply, redevelopment projects and transport network construction are difficult to advance without cooperation, I will work toward rational solutions through ongoing consultations and operational coordination."

On greenbelt releases, she struck a cautious note. "Housing supply through greenbelt releases should be pursued only when public necessity is recognized after comprehensively weighing factors such as the effect on housing stability for ordinary citizens and the feasibility of securing alternative sites," Hong said. "Even then, it is advisable to limit the scope to areas with high levels of existing degradation."

On public housing policy, Hong signaled she would maintain the direction of the "basic housing" initiative she pursued as Gyeonggi Province's urban housing chief. "Basic housing was conceived as part of a housing policy to fulfill the constitutional right to a pleasant residential environment and the housing rights guaranteed under the Housing Basic Act," she said. She explained that the initiative had required legislative and regulatory changes but ultimately failed to reach the move-in stage because the relevant bill did not pass before the end of the previous National Assembly term.

She added that "for the sake of housing stability, it is important not only to expand supply sufficiently but also to ensure that housing reaches those without homes at affordable prices." She said she would maintain the policy direction while remaining open to gathering diverse opinions and not being bound by past announcements on specific program names or details, taking into account policy conditions and market circumstances.

The prolonged slump in the construction sector was also raised as a major challenge for the incoming minister. Hong cited a tightening of project financing, worsening market liquidity driven by rising unsold units — particularly outside Seoul — climbing labor costs since the pandemic, and supply chain disruptions and sharp increases in material costs stemming from the Russia-Ukraine war and conflicts in the Middle East as the main causes of the downturn.

"The Ministry of Land, Infrastructure and Transport has consulted with related ministries on construction recovery and project normalization, and has announced measures including steps to stimulate housing demand in regional areas, clear post-completion unsold units in the regions, and provide project financing and financial support — including as part of the 2026 tax reform package," she said. "There is a need to ensure these measures actually translate into ground-breakings and to continuously monitor whether the construction sector is recovering."