Will 900 Million Won Homes Also Qualify for Safe Conversion Loans?... Ruling Party Says "More Thorough Attention to People's Livelihood Finance"

Sung Il-jong, Chairman of the Policy Committee of the People Power Party, is delivering opening remarks at the 'Comprehensive Measures for Narcotics Control' party-government consultation held at the National Assembly on the 26th. Photo by Yoon Dong-joo doso7@

[Asia Economy reporters Lee Ji-eun and Kwon Hyun-ji] As the ruling party has decided to consult with the government to prepare follow-up measures for the government's livelihood support plans, attention is focused on whether the conditions for the 'Safe Conversion Loan,' which allows switching from variable interest rates to fixed interest rates, can be raised up to 900 million KRW.

Seong Il-jong, the Policy Committee Chair of the People Power Party, said in an interview with reporters after a follow-up meeting on the National Assembly audit on the morning of the 28th, "We have continuously requested to raise the criteria for Safe Conversion Loans, refinancing loans, and jeonse deposit loans to 900 million KRW. We will take care of that."

At the emergency committee meeting held on the 26th of last month, Chair Seong requested the government to consider raising the housing price condition for Safe Conversion Loans from the existing 400 million KRW to 900 million KRW. This was because there is a large gap between actual house prices and loan conditions, preventing ordinary citizens from receiving significant benefits. During the National Assembly audit, it was pointed out as a 'spectacular failure' since the application scale was only 15.2% of the target amount.

However, the plan revealed at the 11th Emergency Economic Livelihood Meeting presided over by the president the day before only raised the housing price condition for Safe Conversion Loans from 400 million KRW to 600 million KRW. Although this is an improvement from before, considering that the median price of apartments in Seoul has exceeded 1 billion KRW, the conditions remain stringent.

This is interpreted as the ruling party's intention to request further relaxation from the government. Chair Seong said in his remarks at the meeting, "We will continue close party-government consultations to prepare follow-up measures for various government livelihood support plans," adding, "In particular, we will meticulously prepare support measures for corporate and livelihood finance such as refinancing loans and Safe Conversion Loans, as well as loan support plans for financially vulnerable groups, and will soon inform the public."

He also said, "The president's remark that all ministries must become export ministries for the livelihood and future is an accurate recognition of South Korea's current position," and added, "The party will actively support effective measures such as mid-term payment loans for new apartments, mortgage loans, LTV easing for single homeowners, bold liquidity supply measures to revitalize small and medium enterprises and ventures, and manpower support plans."