Jeong Sye-kyun "Apologize to the People" Kim Hyun-mi "Real Estate Policies Naturally Have Time Lag" (Comprehensive)

Afternoon of the 23rd National Assembly Economic Sector Government Questioning, Focused on Real Estate Policy
Jung Sye-kyun "'Taereung Housing Supply Measures' to be Announced Soon... Excluding Military Academy Site"
Kim Hyun-mi "Excess Liquidity and Prolonged Low Interest Rates Limit Ability to Curb House Price Increases"
Hong Nam-ki Responds to 'Tax Bomb' Criticism, "Comprehensive Real Estate Tax Applies to Only 1% of the Population"

Prime Minister Chung Sye-kyun is attending the government-wide economic sector questioning session held at the National Assembly on the 23rd, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Asia Economy reporters Wondara and Lim Chunhan] On the afternoon of the 23rd, during the National Assembly's economic sector questioning session, inquiries focused heavily on real estate policies. Prime Minister Chung Sye-kyun and Minister of Land, Infrastructure and Transport Kim Hyun-mi officially apologized for the recent rise in housing prices, saying, "We are sorry to the people," and "We apologize." As countermeasures, they proposed housing supply plans utilizing the Taereung Golf Course and raising the comprehensive real estate tax. Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki rebutted criticisms that the increase in the comprehensive real estate tax was a "tax bomb," stating, "Only 1% are subject to the comprehensive real estate tax."

◆Chung Sye-kyun: "Apologetic to the people... 'Taereung measures' to be announced soon"= On this day, in response to a question from Yoon Hoo-duk of the Democratic Party asking, "The real estate market is unstable, causing great anxiety and concern among the people. Do you have any intention to apologize, Prime Minister?" Chung said, "I sincerely apologize to the people for causing concern regarding real estate issues as the Prime Minister representing the government."

However, in response to a question from Yoon Young-seok of the United Future Party asking, "Do you have any intention to exercise the right to recommend the dismissal of Minister Kim?" he said, "Currently, Minister Kim is doing her best to normalize the real estate issue by striving to balance supply and demand," and added, "We intend to support her so that she can perform well."

Regarding future measures, Prime Minister Chung said, "There is a proposal under discussion to utilize the Taereung Golf Course in the process of preparing measures focused on actual demanders such as young newlyweds purchasing their first home and those without housing," but added, "We are not considering the site of the Korea Military Academy." He further stated, "We are making efforts to include the Taereung Golf Course in the supply measures to be announced within a few days, but the military academy site is not included in these measures."

Minister of Land, Infrastructure and Transport Kim Hyun-mi is attending the government-wide economic sector questioning session held at the National Assembly on the 23rd, responding to questions from lawmakers. Photo by Yoon Dong-ju doso7@

◆Kim Hyun-mi: "There are limits to curbing real estate price rises... not attached to my position"= Minister Kim responded to a question from Seo Byung-soo of the United Future Party regarding the surge in real estate prices by saying, "Globally, excessive liquidity has been supplied and the lowest interest rate situation continues, making it difficult to curb the rising phase of real estate prices." Regarding the criticism that "real estate prices rise only when a left-wing government takes office," she said, "Real estate policies naturally have a time lag before results appear."

In response to Yoon Young-seok's question, "Do you have any intention to take responsibility and step down?" Minister Kim replied, "I am absolutely not attached to my position nor do I have any greed." When asked about rumors that "If you had not listened to Minister Kim, you could have easily earned billions," she said, "I feel sorry for the worries of the younger generation and many market participants caused by rising housing prices," and added, "To resolve these concerns, legal and institutional measures must be fully established to recover speculative profits related to housing."

Regarding criticism from Ryu Seong-gul of the United Future Party that "If no policy had been implemented, prices might not have surged like this," Minister Kim responded, "In the current global ultra-low interest rate and abundant liquidity situation, doing nothing and leaving it to the market alone would cause tremendous chaos."

[Image source=Yonhap News]

◆Hong Nam-ki: "Comprehensive real estate tax applies to only 0.4%... Basic income should be viewed long-term"= Deputy Prime Minister Hong responded to Yoon Young-seok's question about the July 10 real estate measures by saying, "Only 1% of the total population, or 2% of households, pay the comprehensive real estate tax," adding, "98% of apartment complexes do not bear the comprehensive real estate tax. Especially, the additional tax announced on the 10th targets multi-homeowners, applying to only 0.4% of the total population as a tailored measure."

In response to Jo Jung-hoon of the Transition Korea party asking why he opposes the introduction of basic income, Hong said, "It is a matter to be reviewed in the long term." He pointed out, "Employment welfare is about 180 trillion won, and there needs to be a reorganization of that. There is no consensus on whether to maintain the 180 trillion won welfare targeting the vulnerable or to stop everything and start over."

He continued, "Even if basic income of 300,000 won per person is given to the entire population, it would require 200 trillion won," and said, "Between giving 300,000 or 400,000 won to everyone and giving 600,000, 1,000,000, or 2,000,000 won to truly vulnerable groups, from a fiscal perspective, I think the latter is more effective."

However, he did not completely rule out the possibility of discussion. He explained, "In the current situation where overcoming the COVID-19 crisis and economic recovery are more urgent, basic income discussions should be a lower priority," and added, "If there is discussion in the National Assembly, we will participate."

[Image source=Yonhap News]

◆Eun Sung-soo: "Extension of loan maturities for SMEs and small business owners" = Financial Supervisory Service Chairman Eun Sung-soo responded to Yoon Hoo-duk's question about whether the extension of loan repayments for small business owners due to COVID-19, which was extended until September, would be further extended, saying, "It is not just my decision; since there is the other party involved, the general discussion is leaning toward extending the period."

Chairman Eun said, "Initially, we hoped the COVID-19 situation would end by the end of September, but as you know, the COVID-19 crisis is not over, and companies and small business owners are facing difficulties. This morning, I discussed countermeasures with the heads of the five major financial holding companies," adding, "We are well aware of the situation and are working cooperatively to ensure that the public does not suffer damages." He also added, "We have talked with the secondary financial sector as well to extend the period."

Regarding the 'Optimus scandal,' Yoon Hoo-duk asked about the government's measures, and Eun said, "There is a gap between government measures and the actual implementation date, but we have improved sales and management systems with the cooperation of financial companies so that things can be done well even before legal amendments. We also decided to conduct a full investigation of private equity funds as we judged it necessary to look at the whole picture."

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