Office of the President: "We will watch to see what effects these measures have"... "Will respond if necessary"
Distancing from financial authorities' policies... Attempts to clarify as controversy grows
On the 27th, the Office of the President stated that it is closely monitoring various measures and opinions regarding the real estate loan regulations and household debt management plans announced by financial authorities. However, during this process, the Office of the President initially said, "These are not measures from the Office of the President," and "There was no special report to the President," which sparked controversy. As the controversy grew, the office attempted to address the issue by saying, "We are communicating closely," but some pointed out that this created unnecessary confusion.
Kang Yujeong, spokesperson for the Office of the President, said at a briefing that day, "We understand that the measures came from the Financial Services Commission," and added, "These are not measures from the Office of the President." Kang further explained, "I am saying this to prevent any confusion," and added, "We have never announced any position or policy regarding real estate measures." She clarified that the relevant ministries have introduced necessary measures while monitoring the real estate situation, and that the Office of the President did not take the lead in introducing real estate regulations.
When asked whether President Lee Jaemyung had been briefed, Kang replied, "There was no special report." She continued, "We see these as measures developed by the Financial Services Commission after monitoring the situation, and we do not have a particular position or direction to offer," adding, "We will observe what effects these measures have, and if a response from the Office of the President is needed, it will be provided at that time."
The clear distancing by the Office of the President from the measures announced by financial authorities led to controversy. One hour and thirty minutes later, the Office of the President issued an additional notice in the spokesperson's name, stating, "The Office of the President is communicating closely with ministries on current issues."
On the same day, the Financial Services Commission and other relevant ministries held an "emergency household debt review meeting" and announced that, starting on the 28th, homebuyers in the Seoul metropolitan area and regulated regions would not be able to take out mortgage loans exceeding 600 million won. In addition, homeowners with one property will be prohibited from taking out additional mortgage loans for the purpose of purchasing another home (loan-to-value ratio (LTV) = 0%). The government also decided to limit the maturity of mortgage loans in the Seoul metropolitan area and regulated regions to within 30 years, and to ban jeonse loans that are conditional on the transfer of ownership. Furthermore, policy loans such as the Didimdol loan will be reduced by 25% of the annual supply plan. These drastic measures are interpreted as a response to the "panic buying" phenomenon, as this week, apartment sale prices in Seoul rose by 0.43%, marking the largest increase in 6 years and 9 months.
On the 27th, apartment prices in Mapo and Seongdong districts of Seoul rose at the largest rate since related statistics began to be published in 2013. It is expected that the upward trend in Seoul apartment prices will continue for the time being due to the expectation that prices will rise further. The photo shows a real transaction notice at a real estate agency in Mapo, Seoul. 2025.06.27 Photo by Dongju Yoon
Meanwhile, the impact of these new measures on the market appears to be significant. Since his candidacy, President Lee has repeatedly stated that his real estate policy focus would be on supply, not market control, and has also emphasized the principle that he would not attempt to curb housing prices through taxation. In fact, both President Lee and the Office of the President have consistently refrained from commenting on real estate issues.
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