Hong Nam-ki: "Housing Market Stabilizing... Will Strictly Respond to Illegal Activities to Break the Real Estate Invincibility Myth" (Comprehensive)

The 4th Real Estate Market Inspection Meeting of Relevant Ministers Held
"811 Cases of Legal Violations Confirmed... Will Also Block Indirect Loans Through Lending Companies"
"Jeonse Market Shows Increase Rate but Growth is Gradually Shrinking"

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is delivering opening remarks while presiding over the "4th Real Estate Market Inspection Meeting of Related Ministers" held on the 26th at the Government Seoul Office in Gwanghwamun, Seoul.

[Sejong=Asia Economy Reporter Kim Hyunjung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, recently mentioned investigations and prosecutions related to illegal activities in the real estate sector, stating, "We will definitely break the deeply rooted real estate invincibility theory in the market." Regarding the recent housing market, he assessed that "the price increase trend is slowing down, and the market is continuing to stabilize."

On the morning of the 26th, Hong held the 4th Real Estate Market Inspection Meeting with related ministers at the Government Seoul Office and said in his opening remarks, "The government's policy will to stabilize the real estate market, including protecting actual demanders and eradicating speculative demand, is very firm." He added, "We will make every effort to ensure that doubts about real estate price stabilization turn into trust and consensus that 'this time it will definitely be different,' and we will steadily pursue real estate policies without wavering."

At the meeting, Hong reviewed the progress of the government's supply and demand measures and focused on discussing responses to market disruption activities. Prior to this, he revealed that as a result of investigations into real transaction reports and illegal activities, among 1,705 suspicious transactions of high-priced houses over 900 million won nationwide reported from December 2019 to February 2020, a total of 811 cases of legal violations were confirmed. These included 555 suspected tax evasion cases, 37 suspected violations of loan regulations such as misuse for purposes other than intended, and 211 suspected violations of transaction reporting laws such as false contract date reports. Hong stated, "Cases suspected of violations based on the real transaction investigation results will be promptly forwarded to relevant authorities such as the Financial Services Commission, National Tax Service, and National Police Agency for follow-up actions," and added, "The ongoing planned investigations in major overheated areas of the metropolitan area are still underway and will be announced once completed."

Separately from the real transaction investigation, since March, investigations into illegal activities such as online price collusion, fraudulent subscription, and investment scams have resulted in 30 criminal cases being filed, with 15 of them already sent to the prosecution. Currently, 395 cases are under investigation.

Additionally, Hong explained that since the 7th, the National Police Agency has designated five major targets including market order disruption and corruption in reconstruction and redevelopment associations, conducting a 100-day special crackdown. He emphasized, "So far, 169 cases have been cracked down on, indicating that illegal disruptive activities in the real estate market are still ongoing," and reiterated, "We will strictly respond according to law and principles to all illegal activities that disrupt the real estate market to prevent harm to actual demanders."

He also announced regulatory policies against circumventing housing mortgage loan regulations through loan sharks. He explained, "Recently, some financial companies have occasionally circumvented loan regulations by using loan sharks," and added, "The government will conduct administrative guidance to apply LTV regulations even when financial companies provide housing mortgage loans through loan sharks."

Regarding follow-up measures for real estate supply and demand policies, the integrated support center opened on the 20th will continue accepting applications until September and plans to respond with results in October. For public redevelopment, the plan is to ensure no delays in resident briefings in August and the public contest process in September. He said, "The equity accumulation type pre-sale housing, which is scheduled for pilot introduction, is being concretized in weekly task force meetings with related agencies, and detailed information will be announced as it becomes concrete," and added, "The amendment to the Urban and Residential Environment Improvement Act for public redevelopment will be prioritized and proposed in August, and an amendment to introduce public high-density reconstruction will also be promptly proposed."

Regarding the recent housing market, he assessed that "the market is continuing to stabilize." He said, "The sales market has seen a continued low rise in the Seoul area, and although the jeonse (lease) market is still showing an increase, the rate of increase is gradually shrinking," and emphasized, "To spread the current cautious stabilization, managing speculative demand and other factors that disrupt the market is very urgent."

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