Hong Nam-ki "Discussing Housing Supply Plans in Station Areas"... Opposes Nationwide Disaster Relief Fund (Comprehensive)

"Considering 4th Support Fund Based on Comprehensive Review of Quarantine and Our Economic Developments"

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is announcing the 2021 Economic Policy Direction on the afternoon of the 17th at the Joint Briefing Room of the Government Seoul Office in Jongno-gu, Seoul. Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is announcing the 2021 Economic Policy Direction on the afternoon of the 17th at the Joint Briefing Room of the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said regarding the 4th disaster relief fund currently being demanded in the political sphere, "It is too early to discuss the 4th relief fund at this time."

On the 10th, Hong appeared on KBS Sunday Diagnosis's 'The Era of Disaster, Asking the Path of the Korean Economy' and stated, "It is a matter to be judged comprehensively considering how the quarantine situation will develop, the damage, and the economic situation."

He further expressed the position that if necessary, it is desirable to selectively support the affected groups intensively.

He said, "It is desirable to provide selective support to the affected groups." He emphasized, "Government funds are not an inexhaustible source, so it is desirable to selectively and intensively support the affected groups. If disaster relief funds are to be paid again, all must be financed by issuing deficit bonds, which can affect the national credit rating and become a burden on future generations."

When asked whether the selective support stance could be enforced, he replied, "The Ministry of Economy and Finance does not handle state affairs alone; there are discussions within the government and consultation structures with the National Assembly," adding, "I am expressing the opinion of the fiscal authorities, but it does not mean it must be accepted as is."

Regarding instability in the real estate market, he said that additional housing supply measures are under review.

Hong Nam-ki diagnosed, "This year, the housing supply volume is scheduled to be 460,000 units on average based on move-in standards. For Seoul, it is about 83,000 units, but the perception of insufficient supply in Seoul seems to have a significant impact on the real estate market." He added, "If necessary, we will review measures to increase housing supply."

Hong said, "Increasing supply is an important solution to stabilize the real estate market now," and announced, "At this week's meeting of related ministers to inspect the real estate market, we will review housing supply through the expansion of redevelopment and reconstruction announced last year and discuss housing supply near subway stations." He emphasized, "If discussions go well, we may announce additional measures to expand housing supply. It is still in the review stage."

He explained, "Apartment supply, even if announced now, will only be completed in 3 to 4 years, but site selection and area, etc., can have a preemptive effect on the real estate market, so psychological stability regarding housing supply can be expected. Among the already supplied houses, there are multi-homeowners, and encouraging them to put their properties on the market is also an important supply measure."

He continued, "Policy decisions to supply new housing and policies to induce multi-homeowners to put their properties on the market can be seen as housing supply measures. Last year, we also focused on these two measures."

Regarding the criticism that the growth target of 3.2% this year is too optimistic, he said, "Rather than optimistic, I see it as achievable, and we will strive to achieve a V-shaped rebound this year."

Regarding the significant rise in stock prices, such as the KOSPI exceeding 3000 at the beginning of the year, he stated, "I believe it reflects a comprehensive evaluation of domestic economic conditions, corporate performance, and expectations for economic recovery."

He also mentioned population decline. He said, "If progress in solving the low birthrate problem does not accelerate, we may need to consider foreign labor employment flexibly."

He added, "Immigration policy is the next step, but for now, we need to consider the issue of foreign labor employment to cover the immediate shortage of workforce," and said, "We need to change our perception and respond urgently to such issues."

Furthermore, he explained, "Utilizing excellent personnel after retirement is also an important issue in an aging society," and said, "The Ministry of Economy and Finance's Population Policy Task Force (TF) is conducting in-depth reviews on such issues."

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