Democratic Think Tank Warns of Weak Private Housing Supply, Rising Costs

"Supply Shortage in Capital Region Has Built Up Over Years, With No Quick Fix" Policy Push Includes 1.19 Million Public Homes by 2030

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By Noh Hae-chulsun@sedaily.com
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A view of apartment buildings in Seoul. News1 - Seoul Economic Daily Politics News from South Korea
A view of apartment buildings in Seoul. News1

The Institute for Democracy, the think tank of the Democratic Party of Korea, said private housing supply remains weak and housing costs continue to climb, particularly in the greater Seoul area. The party and the government plan to stabilize the housing market by expanding public housing supply and strengthening housing welfare programs.

The institute released the findings on the 2nd in a policy briefing titled "Key Legislative Tasks for the 2026 Regular National Assembly Session, Series 10: Major Tasks and Legislative Push for Housing Stability."

Kang Deuk-gu, the institute's president and a sitting lawmaker, said housing supply in the capital region has fallen short for years and the shortfall has accumulated. "Supply is improving in the public sector, but the private sector continues to lag," Kang said.

"Favorable macroeconomic conditions have kept both the lease market and the sales market on an upward trend, and the resulting rise in housing costs is adding to the burden on households," Kang said. "But a quick improvement on the supply side is not easy, and the current government is focused on laying the groundwork for housing supply to stabilize housing for the public."

The institute outlined major policies, including a housing stability plan announced by the Ministry of Land, Infrastructure and Transport. Key tasks include supplying 1.19 million public homes by 2030, overhauling public housing to guarantee housing rights, providing demand-driven housing support tailored to each stage of life, and building a foundation for a shift to universal housing welfare.

Park Dong-wook, a research fellow at the institute, said the Democratic Party is pursuing housing stability by boosting supply. "We are strengthening housing supply in the public sector and focusing on invigorating the housing market as a whole," Park said.

Original reporting by Noh Hae-chul for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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