IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v37y2000i7p1157-1169.html
   My bibliography  Save this article

The Political Economy of Korean Government Policies on Real Estate

Author

Listed:
  • Chung-Ho Kim

    (Korea Centre for Free Enterprise, Do-Won Building, 290-20 Dowha-Dong, Mapo-Ku, Seoul, South Korea, kch@cfe.org)

  • Kyung-Hwan Kim

    (Department of Economics, Sogang University, C.P.O. Box 1142, Seoul, South Korea, kyungkim@ccs.sogang.ac.kr)

Abstract

This paper investigates the driving forces behind the Korean government's real-estate policy decision-making. In particular, it tries to explain why inefficient and inequitable policies have persisted for so long, and why policy reform has been so sluggish. In order to do this, a few key regulations governing housing supply and land use are described and evaluated. These are the price control on new apartments, control on land-use conversion, green belts and spatial deconcentration policies. Next, it is demonstrated that the standard economic theory of interest-group politics is not appropriate in explaining the behaviour of the government officials in charge of these regulations. It is then suggested that a piecemeal and lukewarm approach to policy reform could be better understood in light of the behaviour of risk-averse government officials taking the political ramifications of their decisions very seriously.

Suggested Citation

  • Chung-Ho Kim & Kyung-Hwan Kim, 2000. "The Political Economy of Korean Government Policies on Real Estate," Urban Studies, Urban Studies Journal Limited, vol. 37(7), pages 1157-1169, June.
  • Handle: RePEc:sae:urbstu:v:37:y:2000:i:7:p:1157-1169
    DOI: 10.1080/00420980020080071
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420980020080071
    Download Restriction: no

    File URL: https://libkey.io/10.1080/00420980020080071?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kim, Kyung-Hwan, 1993. "Housing Prices, Affordability, and Government Policy in Korea," The Journal of Real Estate Finance and Economics, Springer, vol. 6(1), pages 55-71, January.
    2. Karl E. Case & Robert J. Shiller, 1988. "The behavior of home buyers in boom and post-boom markets," New England Economic Review, Federal Reserve Bank of Boston, issue Nov, pages 29-46.
    3. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    4. Son, Jae-Young & Kim, Kyung-Hwan, 1998. "Analysis of Urban Land Shortages: The Case of Korean Cities," Journal of Urban Economics, Elsevier, vol. 43(3), pages 362-384, May.
    5. Green, Richard K. & Malpezzi, Stephen & Vandell, Kerry, 1994. "Urban Regulations and the Price of Land and Housing in Korea," Journal of Housing Economics, Elsevier, vol. 3(4), pages 330-356, December.
    6. Stigler, George J, 1970. "Director's Law of Public Income Redistribution," Journal of Law and Economics, University of Chicago Press, vol. 13(1), pages 1-10, April.
    7. Kau, James B & Rubin, Paul H, 1979. "Self-Interest, Ideology, and Logrolling in Congressional Voting," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 365-384, October.
    8. Bertaud, Alain & Renaud, Bertrand, 1997. "Socialist Cities without Land Markets," Journal of Urban Economics, Elsevier, vol. 41(1), pages 137-151, January.
    9. Chung-Ho Kim & Kyung-Hwan Kim, 1999. "Expectation and Housing Price Dynamics Following Deregulation in Korea," International Real Estate Review, Global Social Science Institute, vol. 2(1), pages 126-142.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Woongkyoo Bae & UnHyo Kim & Jeongwoo Lee, 2019. "Evaluation of the Criteria for Designating Maintenance Districts in Low-Rise Residential Areas: Urban Renewal Projects in Seoul," Sustainability, MDPI, vol. 11(21), pages 1-20, October.
    2. Richard K. Green & Susan M. Wachter, 2007. "The housing finance revolution," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 21-67.
    3. Kim, Kyung-Hwan & Park, Miseon, 2016. "Housing Policy in the Republic of Korea," ADBI Working Papers 570, Asian Development Bank Institute.
    4. Kyung-Hwan Kim & Miseon Park, 2016. "Housing Policy in the Republic of Korea," Working Papers id:10751, eSocialSciences.
    5. Kyungwon Kim & Jae Wook Song, 2018. "Managing Bubbles in the Korean Real Estate Market: A Real Options Framework," Sustainability, MDPI, vol. 10(8), pages 1-25, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bertaud, Alain & Malpezzi, Stephen, 2001. "Measuring the Costs and Benefits of Urban Land Use Regulation: A Simple Model with an Application to Malaysia," Journal of Housing Economics, Elsevier, vol. 10(3), pages 393-418, September.
    2. Stephen Malpezzi, 2000. "Tales from the Real Side: The Implications of Urban Research for Real Estate Finance in Developing and Transition Economies," Wisconsin-Madison CULER working papers 01-02, University of Wisconsin Center for Urban Land Economic Research.
    3. Cohen, Lauren & Diether, Karl & Malloy, Christopher, 2013. "Legislating stock prices," Journal of Financial Economics, Elsevier, vol. 110(3), pages 574-595.
    4. Casey B. Mulligan & Ricard Gil & Xavier Sala-i-Martin, 2004. "Do Democracies Have Different Public Policies than Nondemocracies?," Journal of Economic Perspectives, American Economic Association, vol. 18(1), pages 51-74, Winter.
    5. Fabrizio M. Amoruso & Min-Hee Sonn & Soyeon Chu & Thorsten Schuetze, 2021. "Sustainable Building Legislation and Incentives in Korea: A Case-Study-Based Comparison of Building New and Renovation," Sustainability, MDPI, vol. 13(9), pages 1-41, April.
    6. Michael Davis & Philip Porter, 1989. "A test for pure or apparent ideology in congressional voting," Public Choice, Springer, vol. 60(2), pages 101-111, February.
    7. Stavins, Robert, 2004. "Introduction to the Political Economy of Environmental Regulations," RFF Working Paper Series dp-04-12, Resources for the Future.
    8. Marshall Medoff, 1989. "Constituencies, ideology, and the demand for abortion legislation," Public Choice, Springer, vol. 60(2), pages 185-191, February.
    9. Stefanie Bailer & Mikko Mattila & Gerald Schneider, 2015. "Money Makes the EU Go Round: The Objective Foundations of Conflict in the Council of Ministers," Journal of Common Market Studies, Wiley Blackwell, vol. 53(3), pages 437-456, May.
    10. Diana W. Thomas, 2018. "A process perspective on regulation: Who bears the dispersed costs of regulation?," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 31(4), pages 395-402, December.
    11. Lauren Cohen & Karl B. Diether & Christopher Malloy, 2012. "Legislating Stock Prices," NBER Working Papers 18291, National Bureau of Economic Research, Inc.
    12. James Kau & Paul Rubin, 1981. "The size of government," Public Choice, Springer, vol. 37(2), pages 261-274, January.
    13. Brandon Gipper & Brett J Lombardi & Douglas J Skinner, 2013. "The politics of accounting standard-setting: A review of empirical research," Australian Journal of Management, Australian School of Business, vol. 38(3), pages 523-551, December.
    14. Atif Mian & Amir Sufi & Francesco Trebbi, 2010. "The Political Economy of the US Mortgage Default Crisis," American Economic Review, American Economic Association, vol. 100(5), pages 1967-1998, December.
    15. Myung-Jin Jun, 2012. "The effects of Seoul’s greenbelt on the spatial distribution of population and employment, and on the real estate market," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(3), pages 619-642, December.
    16. Potters, Jan & Sloof, Randolph, 1996. "Interest groups: A survey of empirical models that try to assess their influence," European Journal of Political Economy, Elsevier, vol. 12(3), pages 403-442, November.
    17. Sungmun Choi, 2017. "Politician’s ideology and campaign contributions from interest groups," Empirical Economics, Springer, vol. 53(4), pages 1733-1746, December.
    18. Jacobson, Elaine Mullaly & Emerson, Robert D., 1989. "The Influences Of Id Ogy And Economic Interests On Dairy Legislation," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270466, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. John G. Matsusaka, 2005. "Direct Democracy Works," Journal of Economic Perspectives, American Economic Association, vol. 19(2), pages 185-206, Spring.
    20. Buckley, Robert M. & Kalarickal, Jerry, 2004. "Shelter strategies for the urban poor : idiosyncratic and successful, but hardly mysterious," Policy Research Working Paper Series 3427, The World Bank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:37:y:2000:i:7:p:1157-1169. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.