SEOUL - In a significant policy shift, President Yoon Suk Yeol declared the government's intention to dismantle a controversial real estate strategy established by the prior administration, aiming to address public discontent over housing affordability.
According to Yonhap News Agency, to President Yoon's statements during a public debate in Seoul, the current administration plans to discard the 2020 initiative that sought to adjust declared real estate values to reflect 90 percent of market prices by 2035. This measure, initially aimed at ensuring equitable taxation and curbing rising property costs, has been criticized for exacerbating financial strain on homeowners. Yoon articulated plans to alleviate these concerns by employing alternative policy instruments to negate the previous strategy's impact, even ahead of potential legislative changes.
Highlighting the previous policy's adverse outcomes, Yoon attributed escalating housing prices and increased tax burdens to missteps by former President Moon Jae-in's government. As part of a broader approach to housing reform, the Yoon administration intends to acquire and lease 100,000 affordable housing units to assist financially vulnerable populations. Moreover, a substantial urban revitalization initiative, dubbed the "New Village Project," is set to transform aging residential areas in Seoul's historic districts, including significant investment in Yeongdeungpo Ward, to modernize and enhance living conditions with a proposed budget of 10 trillion won over the next decade.