Government and Ruling Party Strongly Respond to Encourage One Household One Home Policy

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The government and the ruling Democratic Party of Korea plan to focus all efforts on curbing the rapid rise in real estate prices ahead of the general election.

According to the Ministry of Land, Infrastructure and Transport on the 27th, starting next month, the ministry will form an organization together with the Korea Real Estate Board to directly analyze real estate price reports and housing purchase fund procurement plans. Additionally, they plan to crack down on illicit transactions such as gift tax evasion and under-the-table contracts.

In particular, since President Moon Jae-in stated at a press conference on the 16th of last month that if a balloon effect causes prices to rise for houses priced under 900 million won, stronger additional measures could be introduced, there is analysis that additional measures may be announced as early as next month.

Through the December 16 measures, the government lowered the loan-to-value ratio (LTV) to 20% for housing loans exceeding 900 million won in market price and banned housing loans for houses exceeding 1.5 billion won.

The ruling Democratic Party also plans to align with this and present real estate regulations as a key pledge in the upcoming general election.

Floor leader Lee In-young previously said, "Although real estate prices have stabilized after the comprehensive real estate measures, it is difficult to be optimistic about the passage of follow-up legislation as the Liberty Korea Party has proposed abolishing the price ceiling system and easing loan regulations for households with two homes as election pledges," adding, "We will be able to present policy directions in the general election."

In response, a government official said that the additional measures are expected to include methods to control jeonse prices. He said, "Overall measures may be introduced to address phenomena such as some purchase demand shifting to jeonse."

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