Vice Minister of Economy and Finance: "We Will Do Our Best to Stabilize Sentiment by Blocking Excessive Liquidity in Real Estate"

"Real Estate Market Psychology Is a Key Variable"
"Market Participants Must Consider the Possibility of Normalizing Accommodative Macroeconomic Policies"

Kim Yong-beom, Vice Minister of Strategy and Finance, is delivering opening remarks while presiding over the 'Macroeconomic Financial Meeting' held on the 8th at the Bankers' Hall in Jung-gu, Seoul.

[Sejong=Asia Economy Reporter Kim Hyunjung] Kim Yongbeom, the 1st Vice Minister of the Ministry of Economy and Finance, emphasized on the 8th, "We will do our best to stabilize the real estate market sentiment through real estate supply and demand measures and blocking excessive liquidity flowing into the real estate market."

On the same day, Vice Minister Kim held a macroeconomic and financial meeting at the Bankers Hall in Seoul and said, "We will carefully manage the rapidly increased market liquidity during the crisis response process to prevent abnormal overheating of the asset market."

He stated, "Among asset markets, the real estate market is a market where sentiment acts as an important variable," and urged, "Participants in the real estate market should make sober judgments considering not only government measures but also the possibility of normalization of the accommodative macroeconomic policy stance that appeared worldwide during the COVID-19 crisis response."

Earlier, he emphasized, "In a situation where market liquidity is abundant, if vaccine distribution is fully underway soon, asset prices may rise together as domestic and international economic recovery becomes clear," adding, "If the expectation of asset price increases is added to this, it can further fuel price rises, so special attention must be paid to the possibility of abnormal overheating in the asset market."

Furthermore, regarding the prolonged crisis due to the spread of the novel coronavirus infection (COVID-19), he stressed, "We will also pay attention to household and corporate debt risks in preparation for the possibility of deterioration in borrowers' debt repayment ability." He added, "Since the recent credit loan management measures, we will closely monitor household debt trends and ensure that household loan screening is conducted considering repayment ability in the financial field to thoroughly manage household debt," and "From the perspective of proactive risk management for financial companies, we will induce financial institutions themselves to strengthen their loss absorption capacity."

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