[2020 National Audit] Kim Hyun-mi, Minister of Land, Infrastructure and Transport, "House Prices Rising Due to Interest Rate Cuts"

[Asia Economy Reporter Yoo In-ho] Kim Hyun-mi, Minister of Land, Infrastructure and Transport, stated on the 23rd that the government's real estate policy "had a positive impact on the real estate market."

On the 23rd, during the comprehensive audit of the National Assembly's Land, Infrastructure and Transport Committee, Kim responded to a question from Hong Ki-won, a member of the Democratic Party of Korea, asking for an evaluation of the Moon Jae-in administration's real estate policy by saying, "Among the government's comprehensive measures, the September 13, 2018 policy is evaluated as having had the most positive impact on the market."

Kim emphasized, "After the September 13 policy, interest rates were stable and showed a declining trend in early 2019, but in the middle of the year, as interest rates were lowered, there was a tendency to enter an upward phase again," adding, "Fundamentally, tax collection must continue to manage the real estate market in a low-interest market."

Regarding the controversy over the differences between real estate statistics from the Korea Appraisal Board and KB Kookmin Bank, Kim explained, "(Real estate policy) is created not only based on price indicators made by the private sector but also through various indicators such as household income and family income." On the 16th, during the National Assembly audit, there was a dispute between the ruling and opposition parties over the reliability of the Appraisal Board's housing price statistics.

On the review of comprehensive real estate tax (종부세) reductions for long-term homeowners with one house, Kim stated, "We revised the law to provide an 80% tax cut for one household, one house long-term holders, which I believe has given many benefits," and added, "I do not think there is a situation that requires special tax reform."

This clearly indicates opposition to the Democratic Party leader Lee Nak-yeon's proposal to ease the comprehensive real estate tax for long-term homeowners who actually reside in their homes.

In response to Justice Party lawmaker Shim Sang-jung's question, "Was there any party-government consultation on the new alternatives proposed by the Democratic Party's Future Housing Promotion Team?" Kim said, "There was no consultation with the Ministry of Land, Infrastructure and Transport. The party is also not reviewing tax reform."

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