In addition, the Democratic Party of Korea has officially considered abolishing and easing the “reco..

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The Democratic Party of Korea is accelerating its drive to expand real estate supply on the 23rd, even suggesting the possibility of easing and abolishing the reconstruction excess profit return system (re-invitation). The photo shows a construction site in Yongsan-gu, Seoul, on the 23rd. [Yonhap News]

In addition, the Democratic Party of Korea has officially considered abolishing and easing the “reconstruction excess profit return system (re-invitation).” As public opinion on the October 15 real estate measures worsened in the wake of inappropriate remarks by Lee Sang-kyung, the first vice minister of the Ministry of Land, Infrastructure and Transport, it seems that the re-invitation card was hurriedly taken out to block it early.

Rep. Moon Jin-seok, the Democratic Party’s senior deputy floor leader, told reporters at the National Assembly on the 23rd that the National Assembly’s Land, Infrastructure and Transport Committee is discussing the abolition or suspension of the re-invitation.

“There is no point in such a ‘three-year grace period’ because reconstruction will not take place within three years,” lawmaker Moon said. “We are discussing two ways to increase the grace period or abolish it so that it can actually help (supply).” However, he added, “The ruling party and the government have never discussed the issue of abolishing and easing the re-invitation.”

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Re-invitation is a system in which the state collects some of the additional profits generated by reconstruction projects. If profits exceeding 80 million won per member occur, 10-50% of the profits will be collected for each size. It was revived in 2018 during the Moon Jae In government, but no cases have been actually collected so far.

The market continued to argue that it was necessary to abolish and ease the re-invitation to revitalize private maintenance projects, but the Democratic Party of Korea has been in a position to maintain the system. In this situation, the Democratic Party of Korea’s formal review of the abolition and suspension of re-invitation is seen as a stepping stone to appease public opinion by opening the possibility of easing regulations as the controversy over “kicking the ladder” continues due to the October 15 measures. Local elections are scheduled for June next year.

Experts positively evaluated that the abolition of the re-invitation could lead to the effect of expanding supply. Lee Chang-moo, a professor of urban engineering at Hanyang University, said, “There are many reconstruction sites that slow down or conflict as profitability decreases due to rising construction costs. If the reconnection is eased or abolished, it can accelerate the maintenance project that is in the post-licensing stage immediately, which can speed up the actual supply.”

Meanwhile, Vice Minister Lee apologized for saying, “If housing prices are stable, you can buy a house then.” On this day, Vice Minister Lee said, “I have not fully understood the position of the people who live hard with their dreams of buying their own houses,” adding, “I sincerely apologize for hurting the hearts of the people as a high-ranking official of the Ministry of Land, Infrastructure and Transport in charge of real estate policy.”