Moon Jae-in: "We Will Firmly Control Real Estate... Will Continuously Implement Strong Measures"

2020 New Year Press Conference... Economy & Livelihood Sector

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hye-min] President Moon Jae-in said on the 14th, "We will definitely get a grip on real estate," and added, "If we judge that the current measures have expired, we will continuously introduce even stronger measures."

On the morning of the same day, President Moon held a New Year's press conference with domestic and foreign reporters at the Blue House State Guest House, expressing a strong determination regarding real estate policies.

President Moon stated, "The government's will to curb real estate speculation and stabilize real estate prices is firm," and added, "Although the real estate market seems to be stabilizing with the previous real estate measures, some areas have experienced rapid price increases that are difficult for ordinary citizens to accept. This must be restored to its original state."

He emphasized that supplementary measures would be announced at any time. President Moon said, "I do not think all measures were fully prepared with the previous real estate policies," and suggested the possibility of additional measures by saying, "Since the previous measures focused on high-priced houses over 900 million won and multiple-home owners, there is a balloon effect where prices of houses under 900 million won rise, or other effects such as real estate purchase demand turning into jeonse (long-term lease) demand, causing jeonse prices to increase, so we are closely monitoring the situation."

President Moon emphasized, "When measures are introduced, they work for a considerable period, but eventually, speculative capital will find other indirect speculative means," and added, "If the government judges that the current measures have lost their effectiveness, it will continuously introduce stronger measures."

Regarding specific methods to control real estate prices, he said that "strengthening holding taxes and easing transaction taxes" is the right direction. However, he noted, "Although easing transaction taxes is the right direction in the long term, it is difficult to lower acquisition tax and registration tax at the moment because they are major revenue sources for local governments," and expressed caution by saying, "Capital gains tax is also a tax on unearned income from gains made in the process of buying and selling real estate, so lowering it does not align with public sentiment."

In response to some criticisms that the economic outlook is overly optimistic, President Moon said, "Economic indicators always contain both positive and negative signs, but it is clear that negative indicators in our country's economy are decreasing and positive indicators are increasing," and emphasized, "Despite difficulties, we have performed well, and analyses from international economic organizations, the Bank of Korea, and domestic economic research institutes agree that the growth rate will be higher in the new year."

However, he added, "Just because the macroeconomy improves does not mean that the economic experience of each citizen will immediately improve," and said, "The government will do its best to ensure that improvements in the overall macroeconomy lead to real improvements in people's lives."

Regarding the conflict between the taxi industry and 'Tada,' President Moon said, "We have not yet resolved the social conflicts arising between new and old industries," and stated, "There is a need to create a kind of social compromise body to discuss these issues on a case-by-case basis." He continued, "We will do our best to guarantee the interests of existing taxi drivers while allowing new and more innovative businesses like Tada to enter the market."

Regarding recent parachute appointment controversies after the Blue House appointed former Blue House economic secretary Yoon Jong-won as the head of the Industrial Bank of Korea, President Moon said, "It is not right to veto someone just because they are not from inside the organization." He explained, "The Industrial Bank of Korea is a government-funded policy bank and a policy financial institution. It is a kind of public institution, and the government has personnel authority." He added, "If change is needed, appointments are made from outside; if stability is needed, appointments are made from inside."

He said, "Unless the person is unqualified, this individual has worked in the economic and financial field, served as an economic and financial secretary in past governments, and was the economic secretary in our government. There is no deficiency in terms of experience," and added, "Union members will have opportunities to be appointed from inside next time, so I hope they will view this appointment with a more open mind as a personnel decision aimed at the development of the Industrial Bank of Korea and to enable it to play a more active role in supporting small and medium-sized enterprises."

This content was produced with the assistance of AI translation services.