—Commies, step down!
—Step down! Step down!
—Down with the pro-China regime!
—Take it down! Take it down!
—Housing prices rise the moment a progressive regime takes power! Impeach the incompetent regime!
—Impeach! Impeach!
As the day of the National Assembly audit approached, a murderous tension hung over Yeouido.
The Taegeukgi Corps, having gathered early, brandished anti-government placards and demanded the impeachment of Gim Sang-cheol.
And it was only natural. Because the situation was truly murderous.
When the 6.13 measures, assessed as super-strong regulations, ended in failure, the era of surging real estate opened once again. Centered on prime locations, housing prices had risen by as much as 50 percent, and this virus was now spreading throughout all of Seoul.
—There! There’s I Chan-ho’s official car!
—Kill him!
But the government’s response was far from satisfactory.
The Prime Minister’s Office held a public cabinet meeting, designated all of Seoul as a speculation-overheated district, and announced it would fight back with even stronger regulations. Yet this in turn was drawing bitter resentment for smashing the housing ladder for young people.
—Die, you bastard! Inflation is exploding, and now housing prices too?!
—Why did you hand out livelihood support funds! Did you become President to buy 30,000-won burgers?!
Thanks to this, I Chan-ho’s official car was showered with eggs the moment it entered the National Assembly.
Thus, when the next vehicle appeared, the enraged crowd raised their Taegeukgi flags high again. The next car belonged to the opposition party leader, and the reporters who recognized the license plate quickened their steps.
—Party leader, just one word please!
—You foretold a guillotine audit. What will today’s government questioning focus on?
The official car stopped firmly, and then the party leader emerged from the back seat.
The opposition leader appeared with a solemn expression and answered the reporters’ questions.
“Will the questions even have meaning? Today’s government questioning will naturally center on the recent surge in housing prices. As I mentioned before, I believe the Min-guk Party’s populism has finally reached the end of its lifespan.”
—Are you saying the government bears full responsibility for the housing price surge?
“Of course. President Gim Sang-cheol released massive fiscal spending under the pretext of boosting domestic demand. Consequently, not only the fiscal deficit but all negative indicators—prices, real estate, everything—have shot up. Isn’t there a saying? Fool me twice, shame on me; fool me three times, I’m an accomplice. Under the progressive regime, housing prices have murderously skyrocketed three times in a row. How could the government not be responsible?”
—The Blue House has stated it will prevent overheating in Seoul, though.
“That is precisely the biggest problem. Not only have they failed, they lack both the will and the ability to solve it. If all of Seoul is designated a speculation-overheated district, won’t Gyeonggi Province rise? If they regulate Gyeonggi too, what about Incheon?”
The opposition leader rode the guillotine with all his might.
It was an opportunity. Having lost the people’s trust so deeply due to the former president’s three-year mourning period, this was the golden opportunity to finally reverse public opinion.
“The Min-guk Party’s biggest problem! Is its anti-market ideology that believes crushing supply will also crush demand! But nothing could be further from the truth! Regulations can never defeat the market! If they further restrict supply in this state, selecting an overheated speculation district will rather become a guaranteed check for a housing price explosion!”
—Then should regulations be eased?
“Yes, they must be eased. Not only redevelopment permits, but comprehensive regulations including the Green Belt and the land permitting system must be relaxed. Our Daehan Party will convey these concerns to Prime Minister I Chan-ho today and do our utmost so that the government can ease regulations.”
As the interview reached its end, shouts from elderly people were heard in the distance.
—As expected of the Daehan Party! Refreshing!
—Communist Gim Sang-cheol to the North! Don’t go against the market!
—Please, let us citizens come to our senses! Let our Taegeukgi Corps take the lead in enlightening the people!
Hearing those cries, the party leader trembled all over.
With this atmosphere, he was already halfway to success. If he rode the guillotine well in today’s audit, the Seoul mayoral election two months away would also end in a crushing victory.
In the heated atmosphere, one reporter threw a final question.
—But leader. If Seoul regulations are eased, capital region overcrowding is inevitable. Does the Daehan Party have a countermeasure for this?
“I thought the tone was rather aggressive, and as expected, it’s MBC? Our Daehan Party will not answer questions from government-controlled media.”
—Excuse me? No, but…
After breaking through the difficult question with camp logic, the party leader haughtily climbed back into his car.
*
—How do you do? I am a tenant.
The three-hour-long National Assembly audit ended in a perfect victory for the opposition.
Even I Chan-ho, famous for his eloquence, frequently showed troubled expressions during today’s government questioning, and his loss of composure was repeatedly captured on camera.
It was only natural, as it was an overwhelmingly disadvantageous stage.
From 10.29 to 6.13… the housing price surge caused by supply restrictions had led to an apartment crisis, and this was stimulating the people’s surging-real-estate PTSD once again.
In the end, I Chan-ho, who had promised ever stronger regulations, showed a step-back at the audit. He presented various countermeasures and assumed an attitude of seeking the opposition’s cooperation.
—Prime Minister, does that make sense?! When you regulate multiple-home owners, people buy one “smart” home. That concentrated demand triggers Gangnam housing prices, and the ripple spreads throughout Seoul again. Wasn’t this the same vicious cycle during the last housing explosion? Prime Minister, please break free from your regulation-obsession! What Korean real estate needs most right now is supply. Don’t think of diverting apartment demand to villas and officetels—please, increase supply!
The ruling party with 190 seats, its unchecked power, was powerless today as well.
Because the Seoul mayoral election was right around the corner, and all sorts of indicators had flashed red.
The Daehan Party, which had seemed impossible to revive, was raising its head again.
In a poll conducted the day after the audit, the Daehan Party’s support rate was found to have surpassed the Min-guk Party’s for the first time. Following that, in the Seoul mayor suitability survey, current mayor Min Seong-cheol came in first again, while conversely, the Blue House’s approval rating was endlessly heading toward rock bottom.
“Hello, Prime Minister.”
Thus, on a day when the aftermath of the audit was settling, I went to see I Chan-ho carrying a bundle of gifts.
“Well… I suppose, nice to see you, Sejun.”
I Chan-ho, whom I hadn’t seen in a while, let out a sigh with a face burdened by all the exhaustion in the world.
“Have you been well?”
“What would someone who watches the news harder than anyone else be? Since the audit ended, I haven’t had a single day where I could stretch my legs and sleep.”
“Ah… I heard you’ve been troubled by state affairs lately.”
I Chan-ho smiled bitterly.
“Indeed. Why must real estate always cause trouble just when we start to forget about it…”
“If I may be so bold, has the government decided on a direction?”
“We’ve identified the cause, but we have no alternatives. Investigations revealed that various private equity funds and foreign REITs have injected liquidity into our real estate. These are the main culprits who circumvented regulations through irregular means and caused the market overheating.”
I flinched. Had he found out?
“Then will you regulate them?”
“We should, it’s the right thing to do, it’s the right thing, but… I think it’ll be difficult. How do you catch a market already ablaze with regulations? The moment we mention regulations, the opposition bares its teeth, so we have no choice.”
“Then…”
“In the next measures, I’m thinking of easing redevelopment permits and the land permitting system as the opposition demands.”
“But wouldn’t that worsen the concentration in the capital region?”
“What can we do? The election is right around the corner, and public sentiment in Seoul is so hostile. To carry out the policies we want, at the very least the local government heads need to be cooperative, but there’s no answer with the current structure.”
I spoke.
“Prime Minister… I don’t know the full details, but I don’t think your thinking is wrong at all. Regulating Seoul is not the wrong direction. Rather, if we think in terms of the long term, we need to consider population dispersion.”
“Well, if even you understand, that’s quite comforting.”
“No. I mean it, not just empty words.”
“What?”
“Whether relocating companies or school districts, fundamental policies are needed. Right now Seoul is in chaos because there are no homes, while the regions are in chaos due to malignant unsold inventory. If we ignore this and ease Seoul regulations, the urban-rural gap will only widen.”
I Chan-ho smiled bitterly.
“Sejun… Is there any Korean who doesn’t know that? The problem is, who will bell the cat.”
“Then isn’t now the perfect opportunity? With 190 seats, it’s a very powerful ruling party.”
“What you see isn’t everything. As polls turned unfavorable in these local elections, concerns are already pouring out within the party. In such a situation, if we don’t ease Seoul regulations and instead relocate school districts and companies? Then our administration would be impeached immediately, and the Seoul mayor would head straight to the Blue House. It’s impossible from a political standpoint.”
Escaping the Seoul Republic is a hellish task.
First, the 25 million in the capital region would oppose it, and TK with its already solidified camp structure wouldn’t support it, and even if all that were overcome, the Constitutional Court’s ruling of unconstitutionality would be waiting.
“Then… what if we change the local government heads?”
But it must be done.
If my memory is correct, the Eunma Apartments eventually exceeded 10 billion won. Later they were even renamed to Geumma Apartments.
Consequently, Koreans’ asset concentration deepened into real estate again, and when the semiconductor downturn cycle came, the KOSPI became a BOXPI once more.
The money that should have been used for corporate R&D lying dormant in unproductive real estate was a matter of enormous opportunity cost.
The Gangnam invincibility and real estate myth were problems of population concentration, but they helped nothing in any area of society.
“Change the local government heads? What do you mean?”
“If we change the Seoul mayor, will you go in the direction you think is right?”
“Wh-what?”
“Of course I know the polls are unfavorable right now. But once the main election begins, you never know.”
I Chan-ho shook his head.
“Nonsense. Local elections are midterm elections—the ruling party’s graveyard. Moreover, the opponent has the incumbency premium. Already inside and outside the party, people are saying we should send in a sacrificial lamb. How could we overturn this?”
“I don’t know much about politics, but I do know that with money, you can buy enough of the opponent’s organizational votes.”
“Wh-what?”
“You never know. A person who switches sides might bring some kind of internal documents.”
“Don’t tell me… you’re suggesting we sow discord?”
“I think there’s a chance. Their side still hasn’t finished the three-year mourning period. Even internally, opinions on the former administration are split right down the middle. If we keep poking at that weakness, whose support base will consolidate more?”
I Chan-ho looked at me with wary eyes.
“Why are you helping this much, Sejun? Don’t tell me… do you have someone in mind for this Seoul mayoral nomination?”
I answered.
“No. I hope the social discourse that came to a halt 20 years ago will begin again.”
“…What?”
“Are all 50 million going to gather and live in Seoul?”