Housing Instability Caused by Homes Becoming Investment and Speculation Tools
Despite Real Estate Confusion from Mortgage Regulations, Policy Direction Must Be Maintained
Cabinet Members Urged to Respect the National Assembly as an 'Elected Authority'
Emphasis on Preparing for the Heatwave Following the Rainy Season
On July 1, President Lee Jaemyung stated during opening remarks at a Cabinet meeting held at the presidential office in Yongsan, Seoul, "Recently, as the stock market and financial markets have normalized, they seem to be gradually establishing themselves as alternative investment options. I believe it is important to maintain this momentum."
President Lee said, "Because investment options in Korea have been limited to housing or real estate, housing has repeatedly become a means of investment or speculation, leading to housing instability." He made this remark in the context of his emphasis on the 'KOSPI 5000 era' and growing expectations for the stock market, as the market continues to show an upward trend. During the Cabinet meeting, there was also mention of the financial authorities' strict lending regulations, which limit the maximum amount of mortgage loans in the Seoul metropolitan area and regulated regions to 600 million won. President Lee said, "Recently, there has been some confusion and disorder due to housing and real estate issues."
The 'confusion' mentioned by President Lee is interpreted as referring to the aftermath of the 6·27 real estate measures. On June 28, the Financial Services Commission announced that, starting that day, all mortgage loans for home purchases handled by financial institutions in the Seoul metropolitan area and regulated regions would be capped at 600 million won. This is the first real estate regulation measure by the Lee Jaemyung administration, and it is unprecedented in that it restricts the total amount of mortgage loans without considering income or housing prices. While acknowledging the confusion, President Lee also emphasized the need to "maintain the momentum," thereby reinforcing the core direction of the policy.
Additionally, President Lee urged Cabinet members to maintain a respectful attitude toward the National Assembly, which is an 'elected authority.' With the processing of the supplementary budget bill and a series of confirmation hearings for the Prime Minister and ministerial nominees ahead, he indirectly highlighted the need for close cooperation.
President Lee said, "There are currently some misunderstandings in our relationship with the National Assembly," and added, "Even if we hold high positions and significant authority in appearance, appointed powers must respect elected powers." He continued, "The National Assembly is an institution that receives its authority directly from the people, so I hope our Cabinet members will show respect when they attend the Assembly and interact with directly elected officials."
President Lee also called for thorough preparation for the heatwave following the rainy season. He said, "So far, there do not seem to be any notable damages from the rain, but since we do not know how the situation will develop, I ask that you prepare thoroughly for both the rainy season and the heatwave." He added, "When the peak of summer arrives and the heatwave sets in, vulnerable groups such as residents of makeshift housing and elderly people may face crises, so I ask that you pay special attention and manage the situation well."
At the Cabinet meeting that day, 18 presidential decrees were passed, including a partial amendment to the Enforcement Decree of the Public Officials' Disaster Compensation Act, which stipulates that when a public official dies or is killed in the line of duty and is posthumously promoted, the bereaved family will receive the increased survivor benefits corresponding to the promotion, and that each institution will establish a special merit review committee including external experts to ensure fair review of posthumous promotions. The Cabinet also passed a partial amendment to the Enforcement Decree of the Act on the Protection and Support of Small Business Owners, which focuses on supporting long-term installment repayment of policy funds for small business owners. As a general agenda item, the 'Strategic Economic Cooperation Agreement between the Republic of Korea and the Republic of Ecuador' was also approved.
Meanwhile, to mark one month since his inauguration, President Lee will hold his first press conference at 10 a.m. on July 3. The press conference, titled "30 Days of the President: The Media Asks, the People Answer," will feature Q&A sessions on various topics, including the people's livelihood economy, politics, foreign affairs and security, and social and cultural issues.
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