Won Hee-ryong "In the beginning of the house price decline ... price instability remains"

Minister of Land, Infrastructure and Transport Won Hee-ryong said, "Factors that stimulate house prices have decreased due to the recent macroeconomic environment such as interest rate hikes.

In an exclusive interview with Yonhap News Agency held at the government complex in Sejong yesterday (27th), Minister Won said about the recent real estate market situation, saying, "It is the beginning of a period of price decline, and it cannot be said that the decline in house prices has started in earnest."

Minister Won said that current house prices are still high and that a downward trend is needed for a considerable period of time.

Regarding the solution to the late-night taxi problem, he suggested that he would propose flexible fare system and forced dispatch as solutions, and confirm and announce countermeasures early next month.

The following is a Q&A with Minister Won.

▲ From a general point of view, it is in the early stages of a decline in house prices, and it cannot be said that the decline in house prices has started in earnest yet.

Local price instability factors remain significant as well.

We are approaching this with caution as it could worsen polarization if we mistreat it now, as the asset gap widens due to soaring house prices and excessive regulation.

Trading volume plummeted to one-tenth of the previous year, not because of missing demand, but because of a strong wait-and-see attitude.

If the price of a house tomorrow is lower than today, wouldn't there be no one to buy a house today?

▲ Based on the KB Kookmin Bank survey, PIR (the ratio of house price to income) has jumped from 12 to 18 in the past 5 years.

(If the PIR is 18, it means that you need to accumulate 18 years of annual salary to buy a house) If you consider 30 years' worth of annual income as lifetime income, it means that households that had set aside 12 years' worth of housing expenses now need to set aside 6 more years' worth to meet the house price.

This is where problems such as low fertility and old-age finances reduce the consumption capacity of young people and ordinary people.

House prices are expected to continue to decline for a considerable period of time.

However, if house prices fluctuate due to factors such as interest rate hikes, policy adjustments may be made microscopically in response to a crisis.

The government believes that it is time to focus on normalizing the structure of the market by loosening the regulations that can be loosened, since the factors that stimulate the price have been greatly reduced.

▲ Once the loan regulations are relaxed, it can be solved by removing the regulated area, not by applying it uniformly.

In addition, we will promote deregulation on the principle of 'buy-and-dash', starting with the youth and the homeless who desperately need financial support to buy their own home.

In the case of loan regulation for houses exceeding 1.5 billion won, in fact, it was solved without needing to mention any more by loosening all the local regulatory areas recently.

Since there are alternatives to approach in this way, I don't think there is a big problem in normalizing the market.

Last year, when the house price was around the shoulder or waist, if you took a loan and bought a house with a 'young-chul', your heart will be pounding right now, but shouldn't it be viewed as buying a house in the range of 300 to 600 million won?

It is heartbreaking, but I don't think these circumstances warrant filing for bankruptcy.

Although this part will support buffering measures through repayment or personal bailout procedures, there is no consensus that it is necessary to protect even the case of buying ten houses and putting them on a charter while collecting all the credit loans and traveling to the provinces.

▲ There are people who even talk about the abolition of the system, but in light of the spirit of the Constitution or the sound common sense of the people, (property) would think that 'someone who has it is talking too much'.

Although we believe that proper water recovery is necessary, we should not cause harm in good faith by blocking the progress of local reconstruction through uniform application.

So, although it hurts a little, we plan to allow a certain increase in property through reconstruction.

In the process of reconstruction, we are reviewing the direction of subtracting youth housing and public contributions from the calculation of excess profit, and greatly reducing or exempting the return of excess profits for long-term owners of single-family homes.

Although there is no regional difference, we conducted simulations on the progressive section, where to find the point of calculation, and the level at which reconstruction can run smoothly even in the provinces, and a conclusion has been reached.

It means that the project will be done up to a reasonably predictable level.

▲ Safety diagnosis must not be a device to prevent rebuilding.

However, if it is concluded that it is dangerous to apply for a safety examination as soon as 30 years have passed since the completion of the construction, it is also unreasonable to have a welcome placard.

The proportion of structural safety items, which is uniformly set at 50%, will be lowered.

Rather than lowering safety diagnosis items uniformly, I think it is necessary to give local governments more autonomy to adjust according to the situation.

In addition, I am worried about how to make a device that can apply the brake again even if the D grade is obtained.

We are doing a simulation to determine which level is appropriate, and we are contemplating it while collecting opinions from local governments and experts, and we plan to draw a conclusion by the end of the year.

The implementation time will be announced while monitoring the market conditions.

▲ I think there must be a reason why the green belt was designated and why it hasn't been solved so far.

It's not that it can't be released, but I think it's extremely prudent to unravel something that has been protected for decades despite many demands.

However, some green belt areas may be included in the process of designating and supplying public housing sites.

However, touching the very sensitive greenbelt would be extremely prudent.

▲ We are holding our breath and holding our own agenda.

It is expected that the policy will be finalized and announced at the beginning of next month.

First, we plan to solve the subtitle of private taxi.

Currently, the jagged regulations between local governments are to be resolved through orders.

In addition, while applying a flexible fare system, we are trying to make mandatory dispatching of trains mandatory, so that calls are unconditionally answered even for short-distance trips regardless of destination.

In addition, we are going to open up a 'tada' or 'socca' type of business.

Short-term working driving, taxi lease system, and salary system are parts that need to be agreed separately with the industry, so we will proceed with social discussions.

Deregulation will be completely data-based.

By February next year, when the Seoul Metropolitan Government raises the basic taxi fare, we plan to implement the related policy in the first phase, evaluate the effect through data analysis, and move on to the next step.

▲ The 3rd lease law has a problem in that it was enacted hastily without a public hearing during the last sharp rise in house prices.

It wasn't an issue for short-term pricing.

The next general election and presidential election can also be controversial, so I think the government needs to present a broad-based alternative.

We are contemplating how to solve problems such as double prices through uniform regulation and structural problems that fuel the surge in Jeonset prices during rising times.

Win-Win There may be various measures, such as progressively providing tax benefits to lessors or providing maintenance and management benefits if the purpose of rental housing supply is the United States or Europe.

We are currently conducting research services with the Ministry of Justice.

(Photo = Yonhap News)