Real Estate Policy means guideline or behavioral scheme designed by government or local self-governing body in the purpose of solving real estate problems or improving the relation between man and real estate. That is to say, real estate policy is pub...
Real Estate Policy means guideline or behavioral scheme designed by government or local self-governing body in the purpose of solving real estate problems or improving the relation between man and real estate. That is to say, real estate policy is public efforts to make the correlation of man and real estate more rational by improving or solving all sorts of real estate which is common life ground of the public.
The failure of market is caused in the course of nature under the consideration of the fact that real estate market is difficult to be distributed properly through complete competitive market due to the resource's original traits. Also the distortion of resource allotment is happened in that case. Therefore, public intervention from the government is prerequisite factor so as to improve the failure of market. Real estate policy is more important and necessary than any other things. Moreover, in the case of our country with small space of land, it won't go too far no matter how much we emphasize the importance and necessity of real estate policy.
Real estate policy changes a lot as the government's characteristics. It is so important to understand the characteristics of government to expect the macroscopic flow because real estate policy changes by the background of government birth, support ground, aims of national management, etc. In the case of Park Jung-hee's military regime, which established the government with military coups, proceeded the national land development in the style of bulldozer, Chun Doowhan government announced the unprecedented real estate policy in history named "construction of 5million houses' through national emergency countermeasure committee to appease the public's indignation. Noh Taewoo government that announced 'the era for ordinary people' introduced the public concept of land ownership in 1990 but Kim Youngsam's civilian government judged this system unconstitutional and made it retreated. This is the representative case of policy scheme induced the traits of government. Noh Moohyun's "participation" government whose roots are young citizen level including the working class and netizen has stressed on distribution rather than growth and proceeded strongly the policy to repress real estated speculation. This is also able to be understood in the same line. The Participation government started with the politic goals to promote stabilization of common people's residence, improve residence welfare, contemplate balance and stabilization of real estate market in February 2003. The government, however, has not accomplished any actual effect in the real estate market with strong resistance and even earned more grievances from the public, though it has released continuously various kinds of real estate policy like 10?29 general counterplan and 8?31, 3?30 real estate general measure since his inauguration.
The fundamental reason why the real estate matter has not solved regardless of such plans is that the government officials responsible for establishing real estate policies did not access the real estate policy with effective regulation policies increasing the supply to meet the demand induced by the trend of real estate market but release just temporary treatments in political and emotional soldering style. In other words, the policies that the government announced was not consistent ones with long term but almost follow-up measures a step behind the current situation, just pursuing repression of speculation in adaptation to circumstance and promotion of economy, which is simple treatment of the populace remedy. The government should be aware of the fact that real estate policy, which influence directly the property rights of the large mass of the people, is able to solve temporarily its matter by extreme treatment or legislation with black and white logics, but it has much difficulties in solving the matter to the roots, no matter how much they have clear justification and theoretical reasons.
That is, it happened quite differently from other industrial products, other goods and other demand and supply rules in the process of transaction (when the existent building is dealt). Although supply should be increase as demand becomes more, buyer intend to buy more and sellers don't sell the goods and even get in when the price goes up, and the price is soared along with speculative demand and consequently desirable transaction is impossible. To the contrary, demanders is disappeared and sellers released more goods before prices go down when prices are fallen, and the prices becomes more declined and deals are not done. Such phenomena influences negatively the national economy accordingly. The government has no choice but to intervene politically in the matter of real estate, no matter how market economy is good in the society of capitalism. Therefore, in this study, it established several issues to think experience and lessen of the past real estate policies over like following. First, it observed real estate policies of each Korean government till the current one together with theoretical contemplation of real estate policy. Second, it observed in detail the policies on its substance, land, house, real estate taxation system and new towns in the participation government's real estate policy.