Yoo Seung-min: "If Yoon Seok-yeol Administration Fails to Stop Soaring Housing Prices, It's Over"

"Can't Say They're Less Competent Than Moon Administration"
"Foolish Policies Supporting Falling House Prices"

Former People Power Party lawmaker Yoo Seung-min, who holds a Ph.D. in economics, strongly warned that "if the Yoon Seok-yeol administration fails to stop the rapid rise in housing prices, it will be finished."

Former Assemblyman Yoo Seung-min Giving a Lecture
Photo by Yonhap News

On the 26th, Yoo wrote on Facebook, "The foundation of people’s livelihood is price stability and housing price stability. What angered the public the most during the Moon Jae-in administration was precisely the 'crazy housing prices.' Recently, there have been reports here and there of 'homeowners cheering over the rapid rise in housing prices.' When it comes to real estate issues, the Yoon Seok-yeol administration has become so incompetent that it cannot even deny criticism that it is worse than the Moon Jae-in administration."

He said, "The Moon Jae-in administration drove housing prices up like crazy by pouring in foolish regulations and excessive taxes on top of supply shortages and excessive liquidity. The Yoon Seok-yeol administration has been foolishly propping up housing prices that were naturally falling in the market since 2022 with government policies." He added that "even amid high interest rates, the government has artificially supported falling housing prices by pouring tens of trillions of won annually into low-interest policy loans such as special Bogeumjari loans and newborn special loans." He also analyzed that "the administration failed in expanding supply, which conservative governments have relatively done well."

He pointed out, "It is a clear failure of the government to have stood by while housing prices have skyrocketed for months centered on Seoul and spread throughout the metropolitan area," and "during this time, the polarization of housing prices between the metropolitan area and the provinces has worsened." He also criticized, "Despite the seriousness of the situation, the Minister of Land, Infrastructure and Transport said just a few days ago that it was a 'temporary rebound.' It is incompetent, complacent, and utterly pathetic."

Yoo said, "The majority of middle-class citizens who cannot get lottery-based housing allocations can only breathe easier if housing prices go down. For them, the rapid rise in housing prices is the greatest pain," and urged, "Although it is late, the Yoon Seok-yeol government must now make every effort to stabilize housing prices in the metropolitan area."

As methods to control housing prices, he suggested ▲ significantly tightening policy financing that has fueled housing price increases ▲ correcting financial and tax measures that send wrong signals to the market ▲ promptly presenting supply measures to send strong signals to the market ▲ abolishing poor project financing (PF) policies ▲ and the government sorting out and undertaking restructuring. He added, "If the rapid rise in housing prices cannot be stopped, the Yoon Seok-yeol administration must be prepared for its end to change policies. I sincerely hope they come to their senses."