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Han Jeong-ae, newly appointed policy committee chair of the Democratic Party, speaks during a DP floor countermeasures meeting at the National Assembly in Seoul on August 5. / Source: Asia Today

Han Jeong-ae, the newly appointed policy committee chair of the Democratic Party (DP), said on August 13 that tightening the threshold for defining a major shareholder to 1 billion won would be “a bad signal” for capital markets. She stressed the need for measures to redirect capital from the overheated real estate sector into the stock market.

Speaking on MBC Radio’s Kim Jong-bae’s Focus, Han said she conveyed this position during a high-level party-government meeting last Sunday, and that the government responded it would “give the matter careful consideration.” She noted, “In Korea, an abnormally large share of funds are tied up in the real estate market. Without correcting this imbalance, it will be difficult to reduce inequality and social conflict.” She added, “The key is how to channel these funds into the capital market in a healthy way, and lowering the major shareholder threshold to 1 billion won sends the wrong signal.”

Han also revealed that the DP is preparing a real estate supply plan, stressing that “regulations alone have clear limits.” Instead of focusing on new land development, the plan will prioritize accelerating third new town projects and utilizing idle sites and redeveloped public buildings for rapid supply where needed. Regarding redevelopment and reconstruction in Seoul, she said the party is considering “simplifying or running approval procedures in parallel to shorten project timelines.”

On industrial safety, Han said follow-up measures are in the works in line with President Lee Jae-myung’s repeated emphasis on preventing workplace accidents. “Construction firms responsible for serious accidents often avoid being excluded from public projects due to a complicated scoring system,” she said, adding that the Ministry of Employment and Labor is reviewing stricter rules to bar such companies from bidding on public contracts.

She also reaffirmed the DP’s commitment to passing the “Yellow Envelope Act” (an amendment to the Trade Union Act) within August, saying the bill is essential for allowing parent companies to directly engage with subcontractors on safety issues, thereby fostering both healthy labor relations and industrial safety.