Kang Ki-jung, Senior Secretary for Political Affairs to the Blue House, Says "Government Should Consider Real Estate Sales Permit System"... Indicates Ultra-Strong Measures

Sangjo Kim: "Economics includes all policies that can be considered politically... Many remain even after the December 16 measures"

Kang Ki-jung, Senior Secretary for Political Affairs at the Blue House (left) [Image source=Yonhap News]

[Asia Economy Reporter Son Sun-hee] Kang Ki-jung, Senior Secretary for Political Affairs at the Blue House, said on the 15th, "It is something the government should consider, but there is also the idea of implementing a 'real estate transaction permit system' for certain areas," adding, "Our government should listen to such claims." This statement is drawing attention as it effectively hints at considering the housing transaction permit system, regarded as an ultra-strict measure. President Moon Jae-in had stated at a New Year's press conference the day before, in response to questions about the rapid rise in real estate prices, "The government will continuously introduce stronger measures."

In an interview with a CBS radio program that morning, Senior Secretary Kang said, "There has been a 'real estate speculation invincibility myth' in our society," and added, "No government has been able to break this myth of invincibility regarding real estate speculation and has always been seen as a defeated government, but our government says, 'Let's not do that, let's catch them.'" He noted that this was directed at "people who use real estate transactions as speculative means," but did not provide specific criteria.

He also hinted at the possibility of lowering the regulation standards for mortgage loans (currently 20% for amounts exceeding 900 million KRW and a ban on loans exceeding 1.5 billion KRW). This comes just a month after the government announced the December 16 measures last year.

Senior Secretary Kang stated, "If you calculate the average price of apartment transactions in Seoul, the real demand price is not 1.5 billion KRW but about 800 to 900 million KRW," and argued, "When our citizens consider 'how much they can afford to live in Seoul,' most people cannot access 1.5 billion KRW, and if they approach about 900 million KRW, then the loan restriction (criteria) can be lowered."

Kim Sang-jo, Director of the Blue House Policy Office, also appeared on a radio program that day and, regarding additional real estate measures, said, "We have all policy options that can be considered economically and politically," and added, "The measures announced on December 16 (last year) are by no means exhausted. There are still many left," signaling the announcement of additional real estate measures.