Won Hee-ryong: "A 'Cheoeum Jutaek' Providing 90% LTV for Youth Buying Their First Home Is Needed"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Won Hee-ryong, Governor of Jeju Province and a leading opposition presidential candidate, proposed 'First Home,' which aims to lower the loan threshold for young people by setting the loan-to-value ratio (LTV) at 90%.

On the 24th, Governor Won mentioned the term "Yeongkkeul" (borrowing to the limit) on Facebook, saying, "It is heartbreaking that our young people have to sell their souls to such an extent due to the deteriorating housing market situation."

He emphasized, "The desire of Seoul's youth to own homes has continuously increased from 64.7% in 2018 to 73.3% in 2019," adding, "Because the jeonse prices are approaching the sales prices, they would rather buy their own homes."

Governor Won stated, "For young people's first home, LTV 90%. If they have the ability to repay, it should be allowed," and questioned, "In an era where jeonse is disappearing, what else are our young people supposed to do if even that is not provided?"

He pointed out, "If the three lease laws are causing the disappearance of jeonse, now that role should be brought to the primary financial institutions," adding, "Banning even unsecured loans and pushing young people to secondary or higher financial institutions exposes them to higher interest rates and greater risks."

Governor Won said, "The government policy failure caused the rise in housing prices, but if the response is 'You can't buy a house, so live in a hotel or an empty house as jeonse,' it will only increase anger," and proposed, "Along with easing loans to an LTV of 90%, I suggest 'First Home,' where the government supports some portion of interest-free loans for young people purchasing their first home at the median regional housing price."

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