[President-elect-Economy] Yoon Chang-hyun "Real Estate During COVID-19 Crisis, Breaking Out in Cold Sweat... Need to Propose Stimulus Measures"

Yoon Chang-hyun, elected proportional representative of the Future Korea Party. / Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Park Cheol-eung] "The biggest concern is real estate. If problems arise with the housing mortgage loans amounting to 700 trillion won, it will lead to household and financial insolvency. Now is the time for the government and ruling party to reverse their real estate policy direction and rather introduce stimulus measures."

This is the statement of Yoon Chang-hyun, elected number 2 on the Future Korea Party proportional representation list. He is a prominent opposition party economist, formerly serving as chairman of the Public Fund Management Committee and president of the Korea Institute of Finance.

In an interview with Asia Economy on the 21st, Yoon said, "It is not something for the government and ruling party to be happy about if real estate prices fall amid the COVID-19 crisis," adding, "If financial institutions demand loan repayments while incomes have decreased, a large volume of foreclosures will inevitably occur, which could lead to further price declines and financial institution insolvency. It is a nerve-wracking situation."

He continued, "We need to recognize that the essence of the severe crisis Japan experienced was a real estate problem. If stimulus measures are not implemented and real estate prices collapse, the economy could be devastated." He also assessed that the ruling Democratic Party's landslide victory in the general election was less a positive evaluation of economic policies such as income-led growth or nuclear phase-out, and more a reflection of voters seeking stability amid the COVID-19 crisis.

Regarding the disaster relief funds currently under discussion, he pointed out, "You should not spend all the ammunition at once." He criticized the idea of using all available means, such as issuing government bonds, at once when it is uncertain when the COVID-19 economic crisis will end.

Yoon said, "Support payments to individuals should be implemented closer to the end of the crisis to maximize economic effects," adding, "Right now, the focus should be on helping businesses and self-employed people stay open and endure."

He emphasized, "Ultimately, protecting jobs is the most important. Considering public enterprise debt, fiscal soundness is already at a risky level, and if all available measures are exhausted now, it will eliminate options for future responses."

As a financial expert, he is also planning to propose a tentative 'Online Finance Support Special Act' to support the fintech industry in the 21st National Assembly. Yoon said, "Legislation will be necessary to foster a stable coin industry, such as Facebook's Libra, and it is an urgent task to open the door wider for quality industrial capital to enter internet banks."

Yoon Chang-hyun, elected proportional representative of the Future Korea Party. / Photo by Yoon Dong-joo doso7@

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