Minister nominee Hong Jee-sun blames housing supply shortage for market instability

  • Hong Jee-sun identified housing supply shortages as the main cause of Seoul housing instability.
  • Basic Housing would offer non-homeowners public rentals for more than 30 years.
  • Hong faced questions over appointments, Yongsan development and Basic Housing legislation.

Hong Jee-sun, nominee for Minister of Land, Infrastructure and Transport, identified housing supply shortages as the main cause of Seoul’s recent housing price instability at a September 16 confirmation hearing. She pledged to mobilize public and private capabilities to accelerate housing supply, while stressing that policies require consistent, predictable implementation because their effects are not immediate. Hong attributed the shortage to sluggish groundbreaking over the past three to four years and said the government would speed construction until the market feels adequately supplied. The hearing also featured disputes over Basic Housing, a long-term public rental proposal Hong helped design during President Lee Jae Myung’s tenure as Gyeonggi Governor. The model would allow non-homeowners to rent in prime locations such as transit hubs for more than 30 years regardless of income or assets. Hong acknowledged that the policy had not advanced through legislation but rejected the view that it had failed because it had not produced short-term results. She also said no concrete development plan had been finalized for the U.S. military-returned Yongsan Base site, calling for public deliberation, opinion gathering and legislative procedures while preserving spaces including Yongsan Children’s Garden. People Power Party lawmakers questioned her rapid promotion from Vice Minister for Transport to minister nominee within eight months, alleged influence by Kim Hyun-ji and raised concerns about Gyeonggi-affiliated appointments in real estate agencies. Hong denied a close relationship with Kim and said Kim had not handled urban housing affairs during her tenure. Democratic Party lawmakers countered by blaming Seoul Mayor Oh Se-hoon and the Seoul Metropolitan Government for housing-price pressures. Hong has also said the government does not intend to use taxes to control housing prices, while noting that related property-tax bills had been submitted to the National Assembly and were not being pursued solely by the Ministry of Land, Infrastructure and Transport.

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