Hong Nam-ki: "The Real Estate Prices Will Undergo an Adjustment Process to Return to Appropriate Levels"

Hong Nam-ki, Acting Prime Minister, attended the government-related economic questions session held at the National Assembly plenary session on the 20th and responded to questions from Seo Byung-soo, a member of the People Power Party. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Naju-seok] Hong Nam-ki, Acting Prime Minister, said on the 20th, "I believe it is right for real estate prices to return to an appropriate price level."

Acting Prime Minister Hong made this remark during a government question session at the National Assembly, responding to a question from Yong Hye-in, a member of the Basic Income Party.

He stated, "Last year, the rise in real estate prices was so high that market instability was too great, so when I mentioned price declines, it was an overstatement, and I emphasized that stability should come first. I believe that once the market stabilizes, there will be an adjustment process where housing prices find an appropriate level that matches their real value."

He added, "It is also necessary to keep in mind that housing prices fell significantly after the global financial crisis 10 years ago."

Regarding criticisms that the strengthening of property taxes is insufficient given the rise in real estate prices, Acting Prime Minister Hong expressed opposition. He said, "(Property tax) was raised dramatically last year," adding, "The government has imposed the maximum possible regulations."

He continued, "There is also the realization of fair prices and the rise in publicly announced prices, so the shock from property taxes was greater than the government anticipated," and questioned, "We need to consider whether pushing for even stronger measures truly reflects public sentiment."

Meanwhile, Acting Prime Minister Hong responded to Yong's proposal to consider introducing a basic income land dividend by saying, "I think there might be side effects," and "It seems difficult to say this lightly."

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