It is the fate of the five year single term system for the ruling party to distance themselves from or rebel against the Blue House at the end of the regime. This is a common phenomenon experienced by all previous governments. As the presidential primary of the ruling Democratic Party enters into a full-fledged race, remarks aimed at the Blue House are continuing among the ruling party leadership and runners. In particular, it is observed that the government has differentiated itself from the Blue House in areas where the current government's policy failures, such as real estate, are prominent.
As the president's popularity declined and the public sentiment, which had been defeated by the April 7 reelection and by election, did not return, the word 'Moon' did not appear among the runners, and critical remarks continued. It is distinctly different from when lawmakers competed for “Moon Jae-in marketing” in the general election in April last year.
Starting with CEO Song Young gil, he has been carrying a gun. In May, right after the inauguration of the president, he said that “the party’s opinion needs to be reflected in all policies” in the face of the president in May, followed by a proposal to ease the comprehensive real estate tax burden, which was considered a taboo by the current government, and the pro-Moon (pro-Moon Jae-in) camp has been criticized
The Moon Jae in administration also raised the theory of speed control over the prosecution reform, which the Moon administration has been putting great effort into, and clashed with the pro-Moon community. Recently, Kim Ki-pyo, a former anti-corruption secretary at the Blue House, who resigned due to speculation allegations, criticized, saying, “I think it was a verification of goodwill and ease of consideration by appointing a person who bought real estate with a loan of more than 5.4 billion won.” In particular, he struck the Blue House with a direct blow saying, “It is an inner circle (inner circle), so you should not ignore it.” Referring to the 'daegaemun', which refers to a strong friend, he said, "The moment people who say they want to protect the president think 'who can or can't', they can't protect the president." Regarding the lack of personnel verification, some presidential candidates, such as Lee Nak-yeon, former Democratic Party leader, also joined in the criticism.
Real estate policy is at the heart of Song and the ruling party presidential candidates trying to differentiate themselves from the current administration. From CEO Song, Kim Su hyeon, former chief of policy at the Blue House, rebuked Kim Soo-hyeon for responding easily, saying, "It is not good to use taxes as a punitive means and to regard owning a house as a sin."
“The market cannot function without controlling the soaring real estate price”
Former Prime Minister Chung Sye-kyun, the presidential candidate, said, "I have a lot of regrets about the housing policy. “The market function is not working properly,” he said, “even though many policies have been abused, it is still not stable.” Gyeonggi Governor Lee Jae myung pointed out, “What is regrettable with the current government is that it has not been able to control the surge in real estate prices.” He also said, "It is an undeniable reality that people's lives have deteriorated considerably and the reputation of the Democratic government has deteriorated significantly due to the failure to achieve policy success in controlling real estate." Former CEO Lee added to the criticism, saying, "Housing supply should be made in line with changes in demand, but it was not possible."
However, there are many criticisms of these views. In particular, both former Prime Minister Chung and former President Lee have served as prime ministers of the current administration and must take responsibility for policy failures, but there are many critics who point out that it is “treachery of interest” that they seem unrelated. Is it not normal to reflect on yourself first?
What is even more noteworthy is that the real estate measures they put out are stronger than the regulations of the current government, which have proven to be a failure. The plan is to set house prices through stricter regulations such as strong government initiatives and dropping of three bombs. They even brought up constitutional amendments to introduce the concept of land disclosure. There are many criticisms that it is another populism that uses economic policy as a strategy to divide the haves and the have nots based on ideology. There are already concerns that the private sector's autonomy will decrease, resulting in a reduction in the supply desired by the market. It is also at odds with the party leadership, which has turned to the easing of real estate regulations.
Governor Lee Jae myung is arguing for the establishment of the Housing Management and Purchase Corporation (tentative name) and the imposition of a land ownership tax. Governor Lee said, "The belief in unearned income that one can earn money without working is threatening the permanence of the country." He said, "If we do not succeed in controlling the real estate market, people's lives will deteriorate."
The Housing Management and Purchase Corporation plays a role in stabilizing house prices by purchasing houses and supplying them as public rental housing when house prices go down, and putting them on the market when house prices rise. It has been criticized as a socialist idea by the government to intervene and artificially control house prices. Not only is it difficult to determine the timing of buying and selling a house, but there are also concerns about the side effect of blocking the supply of private construction companies. It may also be the subject of an Investor-State Litigation (ISD).
Regarding the land tenure tax, he emphasized that "the tax burden will be strengthened so that multi-home owners can incur severe losses." He emphasized that "a punitive tax will go beyond a tax bomb on speculative real estate." An aide said, "We are working out a plan to intensify the tax burden to the extent that it cannot be compared with the current government." The idea of the governor is to use the tax collected in this way as a source of basic income.
Former CEO Nak yeon Lee brought up the theory of constitutional amendment that included the concept of land disclosure. When he declared his candidacy on July 5, he said, “The right to life, safety, and housing should be newly added to the Constitution. We need to reduce inequality.” As a concrete measure to implement this, he proposed the so-called ‘Land Disclosure Concept 3 Act’, including the Housing Land Ownership Limit Act, the Development Profit Recovery Act, and the Comprehensive Real Estate Tax Act.
Former CEO Lee said that the purpose of introducing the concept of land disclosure was to improve inequity and inequality caused by land, and to solve the housing problem for the common people by taking responsibility for the state's housing welfare and to thicken the middle class. However, there are many critics that this idea itself shakes the private property system stipulated in the Constitution from the root. None of the countries that have introduced a market economy system have reflected the concept of land disclosure in their constitution.
The upper limit of private housing land ownership is 400 pyeong … Direct violation of market principles
Articles 23 (3) and 122 of our Constitution contain provisions for the expropriation, use, restriction, and compensation of property rights according to public needs. The spirit of land disclosure is already reflected. The introduction of the development levy and the comprehensive real estate tax is based on these regulations. However, former CEO Lee said that this was only a declarative level and wanted to increase the intensity even further. The Housing Land Ownership Ceiling Act prohibits corporations from acquiring housing land except for the purpose of establishing a company, dormitory, or factory, and puts an upper limit on individual ownership of housing land up to 1322 m2 (400 pyeong) in Seoul and metropolitan cities.
The development profit redemption law also includes raising the burden of repayment of development profits from a minimum of 20/100 to 50/100. Some critics say that it is against the market economy by institutionally controlling individual property rights. In particular, it is pointed out that these laws infringe on basic constitutional rights that should be protected except in extremely exceptional and special cases.
Even if not, attention is paid to the background of promoting the land disclosure concept and related laws, which can lead to division of the people in the field where all kinds of real estate regulations that put pressure on the market have led to a surge in house prices. Former CEO Lee said, “We have no choice but to use shock therapy as the land mediated income gap has reached a stage where we can no longer ignore it.” However, there is also an analysis that the campaign strategy is trying to operate the frame of the rich-poor confrontation by being conscious of the supporters of the passports. However, experts are diagnosing that if the state intervenes and adopts a policy of unilateral regulation on land, which is a representative scarce resource, rather than relying on market autonomy, it is highly likely to have the opposite effect of shrinking the construction industry and inducing a supply shortage, fueling the rise in house prices.
