Minister Won Hee-ryong: "Cannot Lift Loan Regulations Just to Sell Out Dunchon Jugong"

"Loan Regulations Do Not Mean Borrowing to Buy a House or Cash-Rich People Should Snatch Up"
"No One Sees Current House Prices as Stable... Standards and Principles Are Important"

Won Hee-ryong, Minister of Land, Infrastructure and Transport, is meeting with reporters at the Ministry of Land, Infrastructure and Transport press room in the Government Sejong Complex on the 21st, answering questions related to the recent real estate market.

"Raising the upper limit for apartment interim payment loans from 900 million KRW to 1.2 billion KRW was also a significant decision. However, if they say loans are not available for certain complexes and demand further increases, it would undermine the fundamental policy."

On the 21st, Won Hee-ryong, Minister of Land, Infrastructure and Transport, made this remark during a briefing held at the government Sejong office press room in response to some calls for further easing of interim payment loan regulations.

Minister Won said, "Although the real estate market is sluggish, apartment asking prices are not coming down," adding, "If we increase loans for those trying to buy certain apartments, who will understand the feelings of those who cannot even afford cheaper housing?"

He stated, "Unconditionally loosening loan regulations without lowering asking prices is just pushing people to 'buy houses entirely on debt,'" and added, "If the market had undergone appropriate price adjustments, it would be natural to raise the interim payment loan limit, but no one currently sees the market as stable."

In particular, Minister Won emphasized the issue of standards and principles regarding claims that regulations should be further eased because the sale price of an 84㎡ unit in the Dunchon Jugong Apartment complex exceeds 1.2 billion KRW, making loans difficult. He said, "We cannot raise (loan limits, etc.) centered on specific complexes, and if we are to raise them, we must raise them for all," stressing that policies should not be swayed by controversies related to particular apartment complexes.

Meanwhile, the general sale price per 3.3㎡ of the Dunchon Jugong Apartment (Olympic Park Foreon) in Gangdong-gu, Seoul, considered the largest reconstruction project since the founding of Korea, has been confirmed at 38.29 million KRW. Accordingly, the sale price is expected to be around 900 million to 1 billion KRW for a 59㎡ unit and 1.2 billion to 1.3 billion KRW for an 84㎡ unit. Balcony expansion costs are separate. Interim payment loans will be available for the 59㎡ units, but the 84㎡ units, known as the 'national standard size,' are expected to be ineligible for interim payment loans as their sale price exceeds 1.2 billion KRW.