ㅁ Title　　　: International Conference
　　　　　　　A New Paradigm in Housing Policy
ㅁ Date　　 : December 12~13, 2011
ㅁ Venue　 : Yeong Bin Gwan, Topaz hall(1F), Shilla Hotel, Seoul

Word of Invitation
TThe recent housing market boom-busts in the U.S. and European countries, fueled by rapid expansions of mortgage credit, resulted in serious contagion effects to real economies and financial systems in those countries and their trade partners alike. The incidence makes us re-think as to what constitutes welfare-enhancing housing and mortgage market policies, both in terms of providing affordable housing and mortgage financing for low-income, less-creditworthy, and other underserved households and in terms of ensuring stability in housing market and macroeconomy. In search of new paradigm in housing policy after the Global Financial Crisis, Korea Development Institute (KDI) has organized an international conference as a forum to share relevant research findings and new ideas with global thought leaders from the IMF, U.S. FED, leading academic institutions and policy-making circles.

Housing is such a critical commodity in socio-economic context of any country. Besides the fact that shelter represents one of the most basic necessities to be fulfilled, it usually takes the largest share in households' wealth, more than 80 percent in the case of Korea. Financial sector also plays an important role by offering residential mortgage loans to home buyers and by making construction and development loans to suppliers of new housing. As such, a sustained rise and fall in housing prices and construction activities can cause a de-stabilizing consequence to private consumption, housing and non-housing investment, and lending volume by financial institutions. At the same time, an amplified business cycle caused by housing market volatility can also inflict a secondary effect to housing market, further deepening a downturn in the sector as well as in general economy.

Some specific research and policy questions that we plan to collaborate in the conference include: What are main transmission channels of housing cycle to macroeconomy, and what are appropriate modeling approaches to measure those linkages and regulatory instruments to combat housing bubble? How can policy makers strike balance between owning vs. renting in providing public assistance for affordable housing? What would be mortgage finance policy that can expand financial inclusion for target consumer cohorts on the one hand and can enhance micro- and macro-prudence in lending? And how can public and private home builders be incentivized to be counter-cyclical in their activities to dampen quantity cycle in housing market? In order to explore these questions and more, we invited world-renowned experts from the IMF, Fed, and leading academic and industry institutions in the U.S., European, and Asian countries.

The subject of this conference will be interdisciplinary, and we hope that insights offered by conference participants go beyond Korea and generate global implications in searching new paradigm in housing policy.

I cordially invite you to join us in this timely event, and look forward to your invaluable contribution.

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　November 2011
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　Oh-Seok Hyun
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 President
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　Korea Development Institute

Program

Monday, December 12, 2011

08:30~09:00　 Registration

09:00~09:20　 Opening Remark
　　　　　　　Oh-Seok Hyun (President, KDI)

09:20~09:40　 Welcoming Speech
　　　　　　　To be determined

09:40~10:10　 Keynote Speech (1)
　　　　　　　Macro-Prudential Policy after the Great Recession
　　　　　　　Susan Wachter (Professor, The Wharton School of University of Pennsylvania)

10:10~10:30　 Coffee Break

10:30~12:30　 Session 1: Macro Linkages of Housing

　　　　　　　Chair: Dr. Giovanni Dell'Ariccia (Advisor, IMF)

　　　　　　　Presentations
　　　　　　　　Housing and the Macroeconomy: The Korean. Case
　　　　　　　　Prof. Seung Hwan Seo (Yonsei University) and Dr. Young Il Kim (KDI)

　　　　　　　　Housing and the Macroeconomy: The U.S. Case
　　　　　　　　Dr. Matteo Iacoviello (Senior Economist, FRB)

　　　　　　　　Housing and Macroeconomy for European Countries: The Role of Credit
　　　　　　　　Channel, Risk - and Monetary Shocks
　　　　　　　　Prof. Gabriel S. Lee (University of Regensburg)

　　　　　　　Discussant
　　　　　　　　Prof. Dong Chul Cho (KDI School of Public Policy and Management)
　　　　　　　　Prof. Young Jin Kim (Yonsei University)

12:30~14:00　 Lunch

14:00~16:00　 Session 2: Mortgage Lending and New Policy Paradigm

　　　　　　　Chair: Prof. Moon Soo Kang (KDI School of Public Policy and Management)

　　　　　　　Presentations
　　　　　　　　Housing Price and Mortgage Credit Cycles: Tables of Two Countries
　　　　　　　　Prof. Man Cho (KDI School of Public Policy and Management) and Dr. In Ho Song (KDI)

　　　　　　　　Transatlantic Mortgage Credit Crises –the Role of Financial Structure and
　　　　　　　　Regulation
　　　　　　　　Dr. Hans-Joachim Dübel (Principal, Finpolconsult.de)

　　　　　　　　Mortgage Defaults and Risk-Based Capital: Post-GFC Development and
　　　　　　　　Implications to Emerging Market
　　　　　　　　Dr. Tyler Yang (Chairman and Chief Executive Officer, Integrated Financial Engineering)

　　　　　　　Discussants
　　　　　　　　Prof. Seok-Kyun Hur (Chung-Ang University)
　　　　　　　　Prof. Min Hwang (George Washington University)

16:00~16:15　 Coffee Break

16:15~17:45　 Session 3: Panel Discussion (1)

　　　　　　　Chair: Prof. Susan Wachter (The Wharton School of University of Pennsylvania)

　　　　　　　Lead Presentation
　　　　　　　　How to Deal with Real Estate Booms: Lessons from Country Experiences
　　　　　　　　Dr. Deniz Igan (Economist, IMF)

　　　　　　　Panelist
　　　　　　　　Dr. Matteo Iacoviello (Senior Economist, FRB)
　　　　　　　　Prof. Gabriel S. Lee (University of Regensburg)
　　　　　　　　Prof. Moon Soo Kang (KDI School of Public Policy and Management)
　　　　　　　　Dr. Tyler Yang (Chairman and Chief Executive Officer, Integrated Financial Engineering)
　　　　　　　　Dr. Hans-Joachim Dübel (Principal, Finpolconsult.de)

Tuesday, December 13, 2011

08:30~09:00　 Registration

09:00~09:30　 Keynote Speech (2)
　　　　　　　Policies for Macrofinancial Stability: Options to Deal with Real Estate Booms
　　　　　　　Giovanni Dell'Ariccia (Advisor, IMF)

09:30~09:45　 Coffee Break

09:45~11:45　 Session 4: Rental Housing

　　　　　　　Chair: Kyung-Hwan Kim (Sogang University)

　　　　　　　Presentations
　　　　　　　　Idiosyncracies in the Koran Rental Housing Market and New Policy Directions
　　　　　　　　Prof. Kyung-Hwan Kim (Sogang University), Prof. Chang Moo Lee (Hanyang University),
　　　　　　　　and Prof. Yong Man Lee (Hansung University)

　　　　　　　　Rental Housing Policy in the U.S.: Before and after GFC
　　　　　　　　Prof. Stephen Malpezzi (University of Wisconsin)

　　　　　　　　Rental Housing Policy in European Countries: Similarities and Dissimilarities
　　　　　　　　Dr. Claude Taffin (Scientific Director, Association DINAMIC and consultant, World Bank)

　　　　　　　Discussants
　　　　　　　　Prof. Jeong-Ho Kim (KDI School of Public Policy and Management)
　　　　　　　　Prof. Eui Chul Chung (Konkuk University)

11:45~13:00　 Lunch

13:00~15:00　 Session 5: Construction & Developer Financing

　　　　　　　Chair: Prof. Jae Young Son (Konkuk University)

　　　　　　　Presentations
　　　　　　　　Determining Credit Risk Factors of Real Estate Project Finance Loans in Korea
　　　　　　　　Dr. Jin Kim (Seoul Development Institute)

　　　　　　　　Financing Real Estate Development: A Case Study of US Real Estate Market in
　　　　　　　　2000s
　　　　　　　　Prof. Min Hwang (George Washington University)

　　　　　　　　Construction Financing in Taiwan: Current State and Policy Regime
　　　　　　　　Prof. Chin Oh Chang (National Chengchi University)

　　　　　　　Discussants
　　　　　　　　Dr. Kwan Young Kim (CEO, JR AMC)
　　　　　　　　Prof. Yun Woo Park (Chung-Ang University)

15:00~15:15　 Coffee Break

15:15~16:45　 Session 6: Panel Discussion (2)

　　　　　　　Chair: Dr. MoonJoong Tcha (KDI)

　　　　　　　Panelist
　　　　　　　　Prof. Stephen Malpezzi (University of Wisconsin)
　　　　　　　　Dr. Claude Taffin (Scientific Director, Association DINAMIC)
　　　　　　　　Prof. Kyung-Hwan Kim (Sogang University)
　　　　　　　　Prof. Chin Oh Chang (National Chengchi University)
　　　　　　　　Dr. Kwan Young Kim (CEO, JR AMC)

16:45~17:15　 Keynote Speech (3) - A conference wrap-up
　　　　　　　　Regulating Housing Markets in a New Global Era. Do we Have a Framework?
　　　　　　　　Dr. Bertrand Renaud (Principal, Renaud & Associates, Former Housing Finance Adviser,
　　　　　　　　The World Bank)

Registration
Please pre-register at Only the participants who complete the registration will be invited to the luncheon.
For any further assistance, please reach our secretariat at the contact info below.

※ KDI 김현아 전문연구원 +82-2-958-4078 hahkim@kdi.re.kr
　　　김수진 연구원 +82-2-958-4015, sujin@kdi.re.kr