Prime Minister Han Seong-sook offered an indirect criticism on the 25th of the redevelopment and rebuilding drive that Seoul Mayor Oh Se-hoon has emphasized as a way to expand housing supply, saying "there are difficult aspects when it comes to housing for young people."
The prime minister made the remarks in response to a question from Rep. Kim Nam-geun of the Democratic Party during a comprehensive policy session of the National Assembly's Special Committee on Budget and Accounts.
Kim said housing measures did not appear to be designed around buyers and the supply of affordable homes. "In redevelopment and rebuilding, there are association members who own land and other assets, and about a quarter of the units go to general sale, but the general presale price is usually around 1.5 billion to 2 billion won [about $1.1 million to $1.4 million] in Seoul," he said. He then pressed the point directly, asking whether it was "somewhat irresponsible" for the mayor to argue that simply working hard to spur redevelopment and rebuilding would deliver housing for young people.
Han agreed, saying the prices were "frankly a burdensome range for young people who are just entering the housing market for the first time." She added, "Given current prices and various other conditions, there are difficult aspects when it comes to housing for young people." Housing supply measures, she said, "must be changed so that they are predictable for young people and buyers."
Responding to a question from Rep. Jo In-cheol of the Democratic Party about achieving regional growth through three mega-projects, Han stressed, "When I travel frequently to the provinces, the population is shrinking far more than expected," adding, "We really have to stake our future on this." She continued, "In the end, it comes down to jobs. Only when there are many large companies and an ecosystem for those companies is built does a living area form, and young people stay accordingly."
She emphasized that "this government's three mega-projects are a policy aimed at building a corporate ecosystem and constructing an overall ecosystem that extends to settlement conditions," adding, "If this is built well as a model case, a new era will open."
