Hong Nam-ki "Real Estate Prices Need Adjustment Beyond Stability"... Reluctant on 4th Supplementary Budget Proposal (Update)

Deputy Prime Minister Hong Nam-ki to Hold Press Briefing on Real Estate Policy on the 10th
"Difficult to Blame Any Single Government for Sharp Rise in Real Estate Prices"
"Cabinet Bears More Responsibility Than Blue House... I Carry Heavy Responsibility as Deputy Prime Minister"
On the 4th Supplementary Budget for Flood Recovery: "Can Respond with Reserve Funds and Next Year's Budget Planning"

[Sejong=Asia Economy Reporter Kim Hyunjung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, recently stated regarding the policy goals of the government's successive real estate stabilization measures, "We are not satisfied with price stabilization alone, and for parts that have risen excessively, an adjustment phase should be undertaken." Regarding the fourth supplementary budget (supplementary budget) strongly demanded by the political circles for nationwide flood response, he indirectly expressed reluctance by mentioning various options such as using contingency funds and preparing next year's main budget.

On the afternoon of the 10th, Deputy Prime Minister Hong held a press briefing at the Government Complex Sejong regarding real estate policies and made these remarks. When asked about the specific policy goals related to the Moon Jae-in administration's successive real estate measures, he said, "The government's primary objective is to eliminate market instability," adding, "As a policy official, I hope that we do not just settle for real estate price stabilization, but that for parts that have risen excessively, an appropriate adjustment phase should be undertaken." He further added, "It does not always go as intended, and the market will judge based on supply and demand."

When asked whether the recent rapid rise in real estate prices in a short period was due to policy failures of the previous administration, as explained by Kim Hyun-mi, Minister of Land, Infrastructure and Transport, he replied, "Real estate policy is not something that can be neatly divided by administration like cutting tofu; there is a time lag, and it takes time for effects to appear after policy announcements," adding, "Rather than judging it as the responsibility of a particular government, some spillover effects carry over."

Regarding the ongoing controversy over the whereabouts after the Blue House aides collectively resigned taking 'comprehensive responsibility' for real estate, he repeatedly emphasized, "I am not attached to the position." Deputy Prime Minister Hong said, "If there is responsibility for the policy, the cabinet should be responsible rather than the Blue House (BH)," adding, "Especially for economic policy, I, as Deputy Prime Minister, bear a very heavy sense of responsibility." When asked about the effectiveness of mandatory housing sales for high-ranking public officials, he said, "There are fewer than 2,000 high-ranking officials in our country, so even if they sell their houses, it does not significantly contribute to housing supply," but added, "However, in a situation where the public is struggling with housing issues, it would be desirable for high-ranking officials to take the lead." He also emphasized, "I hope that a participatory atmosphere will emerge among executives at the level of senior officials."

Regarding the recent strengthening of transaction and holding taxes on multi-homeowners and short-term holders, he explained, "The primary goal is to reduce speculative demand aiming for housing profits through extreme multi-homeownership," adding, "It is not a punitive tax based on taxpaying ability but rather to lower expected returns."

Separately from real estate policies, Deputy Prime Minister Hong expressed reluctance and his opinion regarding the fourth supplementary budget formation, which political circles are igniting to respond to recent nationwide floods. He emphasized, "Currently, there are contingency funds of 1.9 trillion won for specific purposes and about 700 billion won in general contingency funds, totaling 2.6 trillion won," adding, "Not all can be used for heavy rain countermeasures, but there are also several supplementary measures prepared to bear debt in special disaster situations." Deputy Prime Minister Hong added, "Extremely, even if the budget for long-term restoration work such as embankment or bridge repairs is secured next year, it will not cause major disruption," and "It is also quite helpful that sufficient specific contingency funds were secured through the first and third supplementary budgets."

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