President Moon: "Signs of Stabilizing House Price Increase"... No Mention of Resignations by Noh Young-min, Others (Update)

"In front of 'multi-homeowners' aides, 'We will increase the burden on multi-homeowners aiming for capital gains'... Kim Jowon 'absent'"

President Moon Jae-in is presiding over a senior secretaries and aides meeting at the Blue House on the afternoon of the 10th. On the left is Chief Presidential Secretary Noh Young-min. August 10, 2020 [Photo by Yonhap News]

[Asia Economy Reporter Son Sun-hee] President Moon Jae-in stated on the 10th, "The effects of the (real estate) comprehensive measures are gradually becoming apparent," adding, "The overheated housing market is stabilizing, and the upward trend in housing prices is beginning to show signs of calming down." There was no mention of the resignation offered by six key aides, including Chief Presidential Secretary Noh Young-min, who took comprehensive responsibility for recent controversies surrounding real estate.

On the same day, President Moon held a senior secretaries and aides meeting at the Blue House in the afternoon and said in his opening remarks, "As the effects of the measures become fully realized, I expect this trend to accelerate further." Kim Jo-won, Senior Secretary for Civil Affairs, who had been embroiled in controversy for owning two apartments in Gangnam without selling them, did not attend the meeting.

President Moon said, "In response to the recurring instability in the housing market, the government and ruling party have prepared comprehensive and unprecedented measures that exceed market expectations, and all legislative processes in the National Assembly have been completed," adding, "Now the government will take responsibility and realize housing justice."

He continued, "Our firm principle is to definitely protect genuine homebuyers and eradicate speculation," introducing the policy package as a "comprehensive edition of housing and residential policies," stating, "We have prepared a four-pronged policy package that includes blocking speculative demand through the recovery of unearned income and strengthening loan regulations, securing the maximum supply of housing, and measures to protect tenants."

President Moon said, "We have established a system to block speculative demand through tax reform that recovers unearned income," explaining, "This is a strong determination to 'end the era of real estate speculation' by increasing the burden on multi-homeowners and corporations holding housing for capital gains and strengthening taxation on short-term investment profits to suppress speculative demand."

He also mentioned measures including ▲blocking the inflow of speculative funds into the housing market ▲preparing supply measures for genuine homebuyers ▲strengthening tenant rights.

President Moon stated, "We will also consider additional tax reductions for owners of one mid-to-low-priced home," and added, "To ensure the effectiveness of the measures, we will consider establishing a real estate market supervisory body if necessary."

He said, "It is a common global phenomenon for governments to actively intervene by strengthening taxation rather than leaving housing solely to the market," but acknowledged, "I am well aware that the significant changes in the system have caused great anxiety among the public." He continued, "The government will thoroughly inform the public about the changed policies to gain their understanding and do its best to prevent confusion on the ground," adding, "Also, since this measure cannot be perfect, we will continue to make improvements."

He urged the political circles and media, saying, "Rather than inciting conflicts between homeowners and non-homeowners, landlords and tenants, or increasing public anxiety, I hope you will work together for the stabilization of the new system and housing."

President Moon Jae-in is speaking at the Chief Secretary and Aide Meeting held at the Blue House on the afternoon of the 10th. August 10, 2020 [Photo by Yonhap News]

Meanwhile, President Moon expressed his sorrow over the nationwide heavy rain damage caused by the longest rainy season in history lasting over 50 days, saying, "It is above all heartbreaking and regrettable that many lives have been lost," and extended "deep condolences once again to the victims and their families." He also urged officials, "I hope you will speed up the process of declaring additional disaster areas beyond the seven cities and counties already designated as special disaster zones due to the increased damage."