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"Derestricted From Speculated Areas

Posted August. 19, 2004 22:10,   


Kang Dong-suk, the minister of Construction and Transportation, said on August 19 that metropolitan areas other than the National Capital area and Chungcheong region are planned to be dissolved from “excessive speculated areas” after consultation with related organizations.

In the press briefing, Minister Kang said, “The prices of houses in metropolitan areas other than the National Capital area and the Choongchung region are pretty much stabilized, and no other problems exist.”

Metropolitan areas other than the National Capital area and the Choongchung region, specified as “excessive speculated areas,” are Busan, Daegu, Gwangju, Ulsan, Changwon, and Yangsan.

Minister Kang added, “Although they are dissolved from the ‘excessive speculated area,’ resale of home ownership will be partly restricted.”

Accordingly, in the regions to be dissolved from the “excessive speculated area,” all other restrictions except the resale of home ownership within a year seem to have been dissolved.

On the matter of the moving of public institutions, Minister Kang said, “Specific institutions to be moved and the region to where it will be moved will be settled soon. The institutions will surely not move to the National Capital area. However, moving to Choongchung area is being considered.”

Complaints stating that the Choongchung area is excluded from the benefits from relocation of national capital and public institutions were raised.

On the matter of housing rentals, Kang said, “There are many tenants who think the monthly rate is too much of a burden. Measures to change the monthly rate system of housing rentals to a lease system are being brought up.”

On the matter of apartments in the Pangyo region, he said, “It seems that there will be an excessive struggle to subscribe for apartment ownership, since a ‘cost-based system’ will be applied to apartments in Pangyo region. Several regulations, such as giving priority to people who did not own houses for a longer period time, restricting resale of home ownership for certain time, and expanding prohibition period for re-winning, will be made.”

Excessive speculated areas are regions specified by the minister of Construction and Transportation where several regulations to stabilize the prices of housing are made. Resale of home ownership is prohibited from the time of distribution to the time of registration. A person owning two houses, a winner of an apartment within five years, and a person who is not a householder are not priorities for distribution. It is different from a speculated area where transfer income taxes must be paid in any actual trade price.

Kwang-Hyun Kim kkh@donga.com