President Roh: “Profits From the Housing Market Should Be Shared by the Public”

President Roh Moo-hyun said on April 27, “All profits from the housing market should be shared by the public,” stressing, “Even though the government will permit creative income, it will never approve speculative income.”

On that day, Roh stated the above at a national affairs conference on the “reform plan of rental housing policy,” held in Cheong Wa Dae, adding, “The government should have the capability to adjust the housing market properly.”

Amid signs of a hike in real estate prices, and with the reconstruction of apartment complexes in the Gangnam area, Seoul, these remarks are also being interpreted as a strong warning.

Roh further said, “The government should pay attention to the private sector, which has thought that the land price has risen at all times, and which is able to sell housing on numerous occasions in accordance with changes in land prices.” He added, “Since the housing market is a special market and rental housing is a special market in which the government can control supply, the government should take the lead.”

Following these remarks, President Roh said, “The country and local governments should have an obvious and comprehensive vision with regards to housing policy, including rental housing,” adding, “For example, if country or local governments purchase a poor housing area and then reform it so that people can live there, the government will firmly back up these policies for the remainder of my presidency.”

Jung-Hun Kim jnghn@donga.com