Won Hee-ryong: "Real Estate Prices Are Abnormally High"

No Greenbelt Release in the Seoul Metropolitan Area

[Image source=Yonhap News]

[Asia Economy Reporter Kim Min-young] Won Hee-ryong, Minister of Land, Infrastructure and Transport, stated, "The position that real estate prices are abnormally high and unaffordable is firm."

On the afternoon of the 4th, Minister Won met with reporters at the Government Sejong Complex and said, "(Real estate prices) should be at a normal level that can go along with economic growth rate and national income."

However, he emphasized, "Policies aimed at controlling prices to a specific target in a short period will fail," and added, "We will not repeat past failures of forcibly using policy measures to hit those targets."

Regarding the recently announced real estate regulation easing, he said, "If the policy target moves quickly, we must also move quickly," and described it as "a process of responding to speed and intensity."

He also stated, "The frenzy of all-in investments and buying sprees occurred not only because of prices but also due to unstable supply itself," and added, "We will provide not only predictable supply plans but also support for public sale housing loans, prices at about 70% of market value, and specific areas, so that people can create timetables for home ownership or housing upgrades."

Regarding the benefit of retrospective application of resale restrictions and relaxed occupancy requirements for some buyers in the reconstruction complex of Dunchon Jugong Apartments due to this regulation easing, he responded, "There is a difference before and after policy implementation, and the question is when to draw the boundary," adding, "We can only ask for understanding due to the difficulties faced by policy authorities."

On measures against jeonse (key money deposit) fraud, he said, "We will create mechanisms to filter out opportunities for tenants, landlords, and agencies to collude and commit insurance fraud against guarantee institutions, and strengthen the pre-screening function when guarantees are applied for."

Regarding the possibility of lifting the Greenbelt in the Seoul metropolitan area, he stated, "In principle, it should be considered as not possible."