President Moon: "The Will to Control Housing Prices Is Important"…Strengthening Burden on Multi-Homeowners (Comprehensive)

After Emergency Report by Minister Kim Hyun-mi of Ministry of Land, Infrastructure and Transport on the 2nd, Policy Direction Presented
Tax Burden Relief for First-Time Homebuyers and Expansion of Housing Supply Also Directed

[Image source=Yonhap News]

[Asia Economy Reporter Onyu Lim] On the 2nd, President Moon Jae-in reiterated his determination to stabilize housing prices by ordering real estate measures focused on strengthening the burden on speculative homeowners, including multi-homeowners.

On the afternoon of the same day, after receiving an urgent report on housing market trends and countermeasures from Minister of Land, Infrastructure and Transport Kim Hyun-mi at the Blue House, President Moon emphasized, "Strengthen the burden on speculative homeowners such as multi-homeowners," and added, "There is a strong public consensus that speculative purchases must be regulated." Despite the government’s June 17 measures centered on tightening loan and reconstruction regulations, the real estate market remained volatile, prompting him to order stronger measures to stabilize housing prices.

Before the urgent report, President Moon also instructed his aides to "consider promoting the amendment of the Comprehensive Real Estate Tax Act as the government's top legislative priority in the 21st National Assembly." The amendment to the Comprehensive Real Estate Tax Act was included in the December 16 measures last year and contains plans to strengthen the tax on multi-homeowners and owners of high-priced homes, but it was not passed in the 20th National Assembly. Ultimately, it appears that he judged a strong warning against speculative transactions is necessary to cool down the overheated real estate market.

President Moon told Minister Kim, "The determination to definitely curb housing prices is important," and emphasized, "If supplementary measures are needed, do not hesitate to create additional policies at any time."

Furthermore, President Moon ordered an expansion of housing supply and tax burden relief for actual demanders such as first-time homebuyers. He instructed, "Although the government has supplied a considerable amount of housing, there is a perception that it is insufficient, so increase the supply volume even if it requires discovering new sources." As a measure to expand supply, he suggested increasing the pre-sale volume of the 3rd New Town development projects.

He also emphasized, "Review ways to reduce the tax burden for first-time buyers such as youth and newlyweds," and "Devise ways to make it easier for first-time buyers to obtain housing."

President Moon reiterated, "The burden on actual demanders, first-time buyers, and low-income people living in rental housing must be significantly reduced," and added, "Low-income people must be strongly protected, and the government must provide assurance for that."

The Blue House stated, "The Ministry of Land, Infrastructure and Transport will prepare specific policy measures in consultation with related ministries based on the urgent report and the president’s instructions on this day."