Presidential Office Monitors Real Estate Loan Regulations
Supply-Side Measures May Be Announced Soon
President Lee Stresses Need to Maintain Market Trends Amid Housing Instability
The Office of the President indicated that it is monitoring the impact of loan regulations related to real estate and suggested that housing supply measures could be announced soon.
On July 1, Kang Yoojung, spokesperson for the presidential office, met with reporters at the Yongsan presidential office and, when asked whether there would be additional measures related to real estate, stated, "Real estate loan regulations have been introduced, and we are currently monitoring various factors, including the market situation." She added, "There are also demands for increased supply, so it appears that supply-side measures are being considered as well."
Regarding Jin Sungjoon, Policy Committee Chair of the Democratic Party of Korea, stating that real estate-related tax reforms are not currently under review, Kang said, "It is not an easy question to answer," and explained, "This is an issue that President Lee Jaemyung emphasized several times during the presidential campaign." At that time, President Lee had stated that, rather than suppressing demand through taxes, he would seek to maintain reasonable prices by increasing supply in real estate policy.
Earlier, President Lee Jaemyung said during opening remarks at a cabinet meeting held at the Yongsan presidential office in Seoul, "As the stock and financial markets normalize, they seem to be gradually establishing themselves as alternative investment options. I believe we need to maintain this trend." President Lee added, "Because investment options in Korea have been limited to housing or real estate, housing has repeatedly become an investment or speculation vehicle, leading to instability in housing," thus conveying his perspective.
This is related to President Lee's emphasis on the "KOSPI 5000 era" and his growing optimism about the stock market, as the market continues its upward trajectory. The cabinet meeting also addressed the financial authorities' strict loan regulations, which limit the maximum amount for mortgage loans in the Seoul metropolitan area and regulated regions to 600 million won. President Lee stated, "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 June 27 real estate measures. On June 28, the Financial Services Commission announced that, starting immediately, all mortgage loans for home purchases in the Seoul metropolitan area and regulated regions would be capped at 600 million won. This is the first real estate regulation under the Lee Jaemyung administration, and it is unprecedented to limit the total amount of mortgage loans regardless of income or home price. While acknowledging the confusion, President Lee also emphasized the importance of "maintaining the trend," reinforcing the core direction of his policy.
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