Hong Nam-ki: "Excess Liquidity Causes Real Estate Overheating... Creating Productive Investment Channels Is the Solution"

28th National Assembly Planning and Finance Committee Plenary Meeting

Deputy Prime Minister for Economy Hong Nam-ki is adjusting his glasses while attending the plenary session of the Planning and Finance Committee held at the National Assembly on the 28th. Photo by Yoon Dong-ju doso7@

[Sejong=Asia Economy Reporter Kim Hyunjung] Deputy Prime Minister for Economy Hong Nam-ki pointed to 'excess liquidity' as one of the causes of the repeated surge in real estate prices, and suggested 'productive investment destinations' as a solution.

On the 28th, at the plenary meeting of the Planning and Finance Committee held at the National Assembly in Yeouido, Yeongdeungpo-gu, Seoul, Deputy Prime Minister Hong said in response to a remark by Kim Ju-young, a member of the Democratic Party of Korea, that "there is a need for follow-up measures to find investment destinations for the liquidity released into the market and to prevent money from flooding into real estate."

He explained, "There have been many criticisms about excess liquidity, and it is true that liquidity flowing into real estate has caused overheating in the real estate market," adding, "I believe the solution is to have the economy improve somewhat and create many productive investment destinations." He further added, "Fundamentally, as the economy improves, we need to create specific investment destinations."

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