The Yoon Suk-yeol administration has significantly scaled back its deregulation agenda and reform initiatives amid a politically charged environment, marked by impeachment proceedings and mounting pressure from opposition parties.
The Ministry of Land, Infrastructure and Transport (MOLIT)’s annual policy report on Jan. 13 highlighted the shelving or abandonment of many hallmark policies aimed at undoing real estate regulations from the Moon Jae-in administration. These measures, once central to Yoon’s efforts to stabilize the real estate market, had been key policy priorities.
Observers note a growing shift in the political landscape, with the government treading cautiously to avoid contentious issues. Some within government circles have expressed concern that a “policy erasure” targeting Yoon’s signature initiatives may already be underway, even with years remaining in his term.
Real estate promises in retreat
During his campaign, Yoon pledged to dismantle Moon-era real estate regulations, widely criticized for limiting new housing supply. Key to this agenda was the repeal of the Restitution of Excess Rebuilding Gains Act, which penalized redevelopment profits and hindered construction projects. The ruling People Power Party (PPP) made the repeal its first bill in the current National Assembly, while Land Minister Park Sang-woo repeatedly emphasized its importance.
Another pledge involved scrapping Moon’s plan to raise official apartment prices to 90% of market value by 2030. In September, MOLIT had signaled its intent with the “Real Estate Price Rationalization Plan.” However, neither policy appeared in the ministry’s latest report, with officials citing concerns about their feasibility.
Efforts to revise the controversial “two major lease laws” — which capped rent increases and introduced mandatory lease renewal rights — have similarly stalled. Public hearings on proposed reforms were planned but remain unheld, leaving the initiative in limbo.
Energy and reform agendas stalled
The administration’s energy policy, symbolized by its push to revitalize nuclear energy, has also faced setbacks. The 11th Basic Plan for Long-Term Electricity Supply and Demand, initially including four new nuclear plants, has been scaled back to three, with a greater focus on renewable energy. The Ministry of Trade, Industry, and Energy plans to discuss the revised framework with opposition leaders on Jan. 14.
Additionally, a comprehensive 2050 nuclear energy roadmap, originally expected by the end of last year, has been delayed indefinitely, reflecting broader challenges in implementing Yoon’s energy vision.
Major reforms in pensions, education, and labor, which Yoon had positioned as critical to his presidency, are similarly stalled. Pension reform discussions, including a proposal to raise insurance premiums from 9% to 13%, have been suspended amid political deadlock. Analysts warn that upcoming elections in 2025 and 2028 could further narrow the window for meaningful reform.
Plans to unify early childhood education and daycare systems have also lost momentum. The government has yet to provide a timeline for implementation, with even basic execution plans delayed. Similarly, a policy to introduce artificial intelligence-based digital textbooks has been watered down, leaving adoption decisions to individual schools.
Labor reforms, including increased transparency in union finances and changes to the minimum wage decision-making process, have also been shelved. Efforts to extend the retirement age from 60 to 65 remain stalled, with discussions ongoing in the Economic, Social and Labor Council but yielding no concrete outcomes.
Long-term vision in limbo
Plans to address South Korea’s demographic crisis and promote the bio-pharmaceutical industry are also uncertain. The proposed Population Strategy Bureau and the Presidential Bio Committee, envisioned as key pillars of the administration’s long-term strategy, have yet to materialize amid political gridlock.
Im Tobin, a professor at Seoul National University’s Graduate School of Public Administration, remarked: “It’s understandable that officials are hesitant to advance politically sensitive policies in such a fraught environment. However, it is precisely in these times that ministers must prioritize national interests and ensure policy continuity to uphold governance.”
