Ruling and Opposition Parties Clash Over Real Estate Policy

The People Power Party has launched a scathing attack on the government's October 15 real estate measures. The party has been waging a continuous offensive, calling the measures—which designated all of Seoul and 12 areas in Gyeonggi Province as regulated zones and tightened lending—a 'socialist experiment.'

At the Supreme Council meeting on the 20th, People Power Party leader Jang Dong-hyuk criticized the policy, stating "Policies that divide the haves and have-nots, anti-market policies that block private supply can never succeed," adding that "the 586 generation regime's socialist economic experiment will exact a heavy price."

Floor Leader Song Eon-seok also argued, "Citizens without homes are sighing deeply, while homeowners are gripped by concerns that the government will raise public land prices and impose property tax bombs to secure tax revenue," claiming "What's needed now is actual apartment supply in Seoul, not in the outskirts of the metropolitan area."

Will the 10·15 Measures Strangle the Market with Triple Regulations?

The core of the government's October 15 real estate policy is ultra-strong regulations. All of Seoul and 12 areas in Gyeonggi Province, including Bundang and Gwacheon, were subjected to triple regulations: adjustment target areas, speculation overheating zones, and land transaction permit zones.

Particularly, for homes valued over 1.5 billion won in regulated areas, mortgage loan limits were reduced to 400 million won or less. Areas designated as land transaction permit zones are subject to a mandatory two-year residency requirement and a 40% loan-to-value (LTV) ratio from the 20th until December 31 next year.

The People Power Party protests that while actual buyers and young people find it even harder to obtain loans to purchase homes in Seoul and the metropolitan area, only the cash-rich benefit from these measures.

Falling Approval Ratings and Local Election Variables

Behind the People Power Party's aggressive stance lies the local elections scheduled for June next year. Their strategy is to shake up centrist voters and Seoul-metropolitan area sentiment by pushing a 'real estate policy failure' frame.

According to a Realmeter survey commissioned by Energy Economy News, conducted from the 13th to 17th among 2,518 people aged 18 and over nationwide, President Lee Jae-myung's positive job approval rating fell 1.3 percentage points to 52.2% compared to the previous survey. Negative evaluations rose 1.6 percentage points to 44.9%.

Realmeter analyzed that "approval ratings are stagnating in the low-50% range as concerns about the jeonse crisis spread following the announcement of high-intensity real estate measures."

A People Power Party official stated, "These measures increase the loan burden on actual buyers and expand uncertainty in new supply, making it highly likely that these groups will express dissatisfaction with the ruling party." A second-term lawmaker from the People Power Party predicted, "Real estate isn't simply a housing issue—it's directly linked to people's livelihoods, prices, and financial instability," adding "If the government is out of step with the market, real estate will become the regime's 'Achilles heel.'"

Ruling and Opposition Parties Counter with Special Committees

The People Power Party plans to launch the tentatively named 'Real Estate Normalization Special Committee' as early as this week. Their strategy is to solidify their image as an alternative party by opposing the expansion of land transaction permit zones and tightened real estate loan regulations with market-friendly policies.

Party leader Jang Dong-hyuk argued, "If the reckless Lee Jae-myung regime copies even the Moon Jae-in administration's tax bombs, the result is clear," claiming "The price for betraying the market is the regime's downfall."

In response, the Democratic Party of Korea has also decided to establish the tentatively named 'Real Estate Measures Support Task Force (TF)'. The TF will respond to the People Power Party's offensive while discussing specific supply measures with the government as follow-up to the October 15 real estate measures and pursuing supplementary legislation.

Park Su-hyun, the Democratic Party's chief spokesperson, stated, "The People Power Party's offensive, which tells lies every time they open their mouths regarding the October 15 real estate measures, is accelerating public anxiety, so we're taking action to respond," adding "This is also a measure to strengthen on-site meetings and public opinion gathering."

As the ruling and opposition parties' confrontation over real estate measures intensifies, it is expected to emerge as the biggest issue in next year's local elections.