People Power Party Proposes Real Estate Consultative Body to Democrats

The People Power Party has proposed that the ruling and opposition parties jointly form a 'ruling-opposition 3+3 real estate consultative body' to expand housing supply and stabilize jeonse and monthly rent prices. Lim, the party's policy committee chairman, announced at a National Assembly audit response meeting on the 30th that the body should include the policy committee chairmen of both parties, the floor leaders' senior deputy for policy, and the secretaries of the Land, Infrastructure and Transport Committee.

The move came against the backdrop of the Democratic Party's announcement of eased real estate regulations. Through party-government consultations, the Democratic Party decided to raise the floor-area ratio for private redevelopment and reconstruction projects to up to 1.2 times the legal cap. Chairman Lim noted that this falls short of the 1.3-times cap the People Power Party has consistently demanded.

Points of contention remain. Lim pointed out that the Democratic Party maintains its position of limiting the benefits of higher floor-area ratios to small housing units of 60 square meters or less in exclusive floor area. He criticized that if the party appears to lift regulations on the surface while imposing all sorts of restrictions and shackles behind the scenes, the measures will yield no real effect in the market.

The Democratic Party has yet to take a position on the proposal.