LOCAL-CENTRAL GOV'T CLASH

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Local governments are demanding authority over publicly announced real estate prices and their freezing. The central government has reiterated there are no problems in publicly announced housing prices, which are based on higher market prices. The central government has vowed to discuss the matter with local governments.

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The Minister of Land, Infrastructure and Transport-designate Noh Hyeong-wook once again stressed stabilization of housing supply and eradication of real estate speculation.
He declined to comment on the controversy over higher publicly announced real estate prices brought forward by local governments led by opposition party members.

[Soundbite] Noh Hyeong-wook(MOLIT Minister designate) : "The ruling and opposition parties and local governments seem to be on the same page on housing stabilization and speculation."

Publicly announced housing prices surged nearly 20 percent on average this year, prompting some local governments to demand even their freezing.

[Soundbite] Oh Se-hoon(Seoul mayor(Apr. 18)) : "The problem is not the price incline but the speed of its growth."

The Ministry of Land, Infrastructure and Transport has reiterated again there are no problems in publicly announced real estate prices, because they are based on higher transaction prices. The ministry rejected the local governments' demand to give them the authority to decide on publicly announced housing prices. The land and transport ministry said there are no legal grounds to do so, because officially announced real estate prices are made public after deliberations by the ministry and the Central Committee on real estate public prices. A ministry official added the land and transport ministry could examine the matter further if the local governments in question present detailed plans on how to investigate publicly announced housing prices. The ministry reaffirmed its plans to continue estimating officially announced housing prices in line with transaction prices, while adjusting real estate taxes every three years. The newly designated minister of land, infrastructure and transport has vowed to discuss the matter sufficiently with the local governments to come up with viable solutions.