Opposition to Revealing Original Prices of Apartment Sales to the Public

Lee Hun-jae, Deputy Prime Minister and Minister of Finance and Economy, said, "I strongly support the framework of policies announced by Kang Dong-suk, Minister of Construction and Transportation," in regard to the controversy over making apartment sales’ original prices public. This remark assured those who oppose the policy of making apartment sales’ original prices known to the public, a view held by some members of the Uri Party.

Lee also ordered the Ministry of Construction and Transportation to "devise soft-landing policies for the condition of construction industry, which has been sluggish throughout this year."

Deputy Minister Lee told the press in its regular press briefing and economic minister meeting that "the original price system based on other prices is more proper than revealing the original prices," and added, "If we maintain the standard construction fee, which provides a standard to the fluctuating price system based on other prices, we can minimize the side effects caused by the gap from the market price."

"Construction investments have effects such as creating domestic demand and employment, but the construction balance has been below zero, and the percentage of construction investments has been low since last year," said Lee, emphasizing the importance of the revival of the construction industry.

In addition, he said at the luncheon with press members of Cheong Wa Dae, "Right now, construction companies are avoiding building lease housing because of harsh regulations regarding capacity rates -- the added number of all the ground floor area divided by the land area and multiplied by 100 -- when re-constructing or re-developing," and added, "We need to create some boosting policies such as adjusting the capacity rate to a higher number so that more lease housing along with regular installment-sale apartments are being built."

Lee offered an example by proposing to raise the capacity rate in an area with a 200-percent rate to 300.

He also added, "In order to vitalize the leased housing, it is desirable for leased housing to be part of the center of the city, rather than in the suburbs, along with apartments so that it does not suffer from being perceived poorly."

He also predicted that it is possible that consumer prices will rise to the 4-percent level next month if the high gas price continues.

Jong sik Kong kong@donga.com