[2021 National Audit] Hong Nam-ki "Steep Rise in Real Estate Recently Paused... Judged to Have Peaked"

October 5 National Assembly Budget Committee Ministry of Economy and Finance 'Economic and Fiscal Policy Audit'

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance (center), is attending the National Assembly's Public Administration and Finance Committee's audit of the Ministry of Economy and Finance held at the National Assembly on the 5th, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Sejong=Asia Economy Reporter Moon Chaeseok] Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki said on the 5th, "I judge that the recent steep rise in real estate prices has temporarily paused and turned downward."

At the Ministry of Strategy and Finance's National Assembly audit by the Planning and Finance Committee on the same day, in response to a question from Jeong Il-young, a member of the Democratic Party of Korea, asking "Do you think the real estate market is stabilizing?", Deputy Prime Minister Hong replied, "I don't think the real estate market can be considered stable yet," but answered as above.

He explained, "At the end of last month, 3 to 4 indicators showed signs of turning downward, so cautiously, I can say that the upward sentiment is pausing."

When Yoon Hu-duk, chairman of the Planning and Finance Committee, asked, "What are the three indicators that have turned downward?", Deputy Prime Minister Hong explained, "The rate of increase in real estate prices in the metropolitan area and Seoul rose until the second week of September but declined in the third week. The sales supply-demand index, which predicts housing price trends 1 to 2 months in advance, fell in the third week of last month, and the Bank of Korea's consumer sentiment index for housing price outlook, which had been rising sharply, also declined last month."

Deputy Prime Minister Hong said, "I believe factors such as the rise in interest rates and loan restrictions, as well as the global environment including the US tapering movement, have had an impact."