Choi Kyunghwan, Who Was Said to Urge People to "Buy a House with Borrowed Money," Says, "Those Who Listened and Bought Then Thank Me Now"

Choi Kyunghwan: "Those Who Bought Homes in 2015 After Listening to Me Are Now Living Without Worries"

Former deputy prime minister for economic affairs Choi Kyunghwan, who oversaw the Park Geunhye administration's economic policy, said, "Those who bought a home in 2015 after listening to what I said are now living without having to worry about housing, at least."

Former President Park Geunhye (left) and former Deputy Prime Minister for Economy Choi Kyunghwan. Yonhap News

Appearing on the Maeil Newspaper YouTube program "Lee Dongjae's News Cabinet" on the 10th, former deputy prime minister Choi said, "The media framed it as Choi Kyunghwan saying, 'Buy a house with borrowed money.' I never used those exact words, but in the end I am hearing people say, 'If I had not bought a house back then, it would have been a disaster,' and 'It was a good thing I bought a house then. Thank you.'"

In July 2014, former deputy prime minister Choi said, "With jeonse prices currently at about 70% of sale prices, you can buy a house if you have just 30% more," adding, "If credit enhancement is provided, a considerable number of people now living on jeonse can switch to home purchases."

His point was that since jeonse prices were at about 70% of sale prices, it was better to borrow the remaining 30% and buy a home. Afterwards, the economic team at the time eased related regulations and lowered interest rates. The media dubbed these policies "Choinomics," after former deputy prime minister Choi.

On this day, former deputy prime minister Choi argued that whenever a progressive-leaning government comes into power, it tightens regulations based on ideological standards, causing housing prices to skyrocket. He diagnosed that housing prices can never be contained through regulations.

When the host noted, "During the Moon Jaein administration, there were as many as 26 rounds of (real estate) regulations," former deputy prime minister Choi responded, "You cannot win against the market unless you abandon overheated, ideology-driven regulations."

Former deputy prime minister Choi said, "Even under this government alone, isn't it true that they are, frankly, working very hard to regulate, with bold and unimaginably strict lending regulations and a land transaction permit system?" He added, "But are housing prices being contained? They are not. In the end, the answer is that you cannot bring down housing prices with regulations."