[Economic Outlook] Government Focuses on Response Measures to LH Land Speculation Allegations

7th Real Estate Market Inspection Meeting of Related Ministers

Minister Byeon Chang-heum of the Ministry of Land, Infrastructure and Transport
[Photo by Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] The government is focusing on discussing response measures related to the speculation allegations involving Korea Land and Housing Corporation (LH) employees' land in Gwangmyeong and Siheung. It is also closely monitoring the recent trends in household loan increases due to 'Yeongkkeul' (borrowing to the limit) and 'Bittu' (debt investment).

On the 7th, the government will hold a real estate-related ministers' meeting to review response measures to the new town speculation allegations involving LH executives and employees, along with measures to prevent recurrence. A statement titled 'Message to the People Regarding Real Estate' will also be announced. Deputy Prime Minister Hong is expected to explain post-incident prevention measures related to the LH scandal and clarify the consistent implementation policy of the ongoing 2·4 real estate supply plan. Attendees include Minister of Land, Infrastructure and Transport Byeon Chang-heum, Director of the Office for Government Policy Coordination Koo Yoon-chul, Vice Minister of the Ministry of the Interior and Safety Lee Jae-young, and Commissioner of the National Tax Service Kim Dae-ji.

Although the regular real estate market inspection ministers' meeting is scheduled for the 10th, considering the seriousness of the LH issue, the government arranged a separate ministers' meeting over the weekend. There is keen interest in whether strong response measures against speculation will be announced. Earlier, Deputy Prime Minister Hong stated, "The preemptive land speculation allegations by LH employees, apartment contract cancellations that distort actual transaction prices, vaccine queue-jumping allegations, and illegal stock trading are making these already difficult times due to COVID-19 even harder and causing public anger."

The Ministry of Economy and Finance will release the Monthly Fiscal Trend report (as of January) on the 9th. The report provides insights into government revenue and expenditure, fiscal balance, and national debt.

The Bank of Korea will disclose the 'Financial Market Trends for February' on the 10th. In January, household loans in the banking sector increased by nearly 8 trillion won due to rising jeonse prices and a stock investment boom. Recently, major commercial banks have seen a decline in credit loans alongside sluggish stock markets, raising interest in whether there will be changes in overall household loan trends. The following day, the Bank of Korea will submit the 'Monetary and Credit Policy Report,' which comprehensively analyzes recent monetary and financial conditions, to the National Assembly.

Financial authorities will discuss the extension of the temporary financial regulatory easing measures introduced in response to the COVID-19 crisis. The Financial Services Commission plans to hold a regular meeting next week to review the current status and future plans for the financial regulatory easing measures. The meeting is expected to discuss whether to extend measures such as the temporary relaxation of the Liquidity Coverage Ratio (LCR) and the temporary suspension of the loan-to-deposit ratio (LDR) application.

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