Korea’s housing policy exhibits a certain limitation in that it tends to adopt a reactive approach, characterized by regulatory and deregulatory measures that respond to market fluctuations. Existing research on housing policy has failed to offer a comprehensive, systemic perspective that accounts for the complex interrelationships between the state and the market, as they affect the supply and occupancy of housing. Instead, these studies have largely focused on individual policies aimed at supporting single homeowners and expanding public guarantees for lease contracts. Such policies, however, are unlikely to effectively stabilize the housing supply and residential markets.
To address these limitations, this study aims to analyze the housing supply and lease market problems through the lens of the “Housing Regime.” Rather than simply copying and adapting foreign policies to address specific issues, this study takes a more holistic approach by examining the path-dependent nature of the housing regime’s development and identifying its inherent vulnerabilities. By doing so, it seeks to derive alternative strategies that are tailored to the unique challenges of the Korean housing market.
The Housing Regime theory, comprising of the housing supply and occupation regimes, provides a compelling perspective to examine Korea’s housing policy history, which can be broadly categorized into three distinct periods. The first period marks a significant shift towards industrialization and urbanization, during which the “state-led model” promptly and extensively catered to the housing demand. Subsequently, the emergence of the “development alliance-led model” characterized the second period, which is also classified as a ‘Fordist’ period. In contrast, the third period witnesses a transition towards a ‘post-Fordist’ approach, albeit with weak supply structures for both public and private housing to accommodate the evolving demographic, industrial, and urban structures.
The study has derived policy recommendations for the housing supply and rental sector aimed at stabilizing the national housing market. To begin with, a fundamental aspect is to explore alternative housing systems and improve the supply structure. The existing supply model is based on continuous urbanization, population growth, and a loan-based financial structure. However, during times of low growth and population decline, it is crucial to adopt a long-term, low-cost supplier financial structure that is not solely dependent on a consumer-centered loan-based financial structure that relies on capital gains. To this end, the study recommends various supply models such as permanent rental projects, land-lease housing for installment sale, and equity-sharing housing. To effectuate a shift in the occupancy landscape, it is imperative to augment the rental housing supply chain and revamp the associated institutions. The Housing Lease 3 Acts’ implementation lacked adequate public rental inventory, resulting in the suboptimal achievement of legislative aims, including but not limited to the tenant’s contractual renewal right and rent cap regulations. To enhance the transparency of the rental market, a policy to cultivate social renters through a third sector, neither entirely public nor private, should be contemplated. Additionally, it is crucial to improve the current rental housing management system, particularly with regard to legal provisions, such as broadening the scope of the Special Act on Private Rental Housing.
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