[Interview] Hong Young-pyo "Special Budget for COVID-19... Apartment Prices Soar if Loan Regulations Ease"

Democratic Party Leader Candidate Relay Interview ①
Securing Budget Through Party-Government-Cheong Coordination
Oppose DTI·LTV Adjustment but Considering Financial Support for Youth and Homeless
"Need a Troubleshooter to Overcome Ruling Party Crisis"

[Asia Economy Reporter Oh Ju-yeon] Hong Young-pyo, a member of the Democratic Party of Korea, emphasized that if elected as party leader, he will propose the "special budget allocation for COVID-19 damage compensation" as the first agenda item in the high-level party-government-civil cooperation meeting. He plans to establish a continuous and systematic disaster relief payment system to formulate post-COVID-19 measures.

Hong, who is running for the Democratic Party leadership election, stated in a written interview with Asia Economy on the 26th, "From May to June, the Ministry of Economy and Finance and each ministry will negotiate the 2022 budget draft. We will promptly hold party-government-office consultations to allocate a special budget for COVID-19 damage compensation and resolving polarization." He added, "Because there is no comprehensive and institutional compensation system, unnecessary conflicts arise over the scale and method whenever disaster relief funds are discussed. This is not a problem that can be solved by piecemeal supplementary budgets."

Democratic Party of Korea presidential candidate Hong Young-pyo (Photo by Hong Young-pyo's office)

He also intends to coordinate with the government to ensure smooth progress in COVID-19 quarantine and vaccine supply. He said, "The government has already thoroughly reviewed the safety of each vaccine and purchased a sufficient quantity. We must trust and follow the government's plan to complete the first dose for 12 million people by the end of June."

Regarding real estate measures, he supported the government’s stance. In response to calls to ease the Loan-to-Value ratio (LTV) and Debt-to-Income ratio (DTI), he said, "This is similar to the policy during former President Park Geun-hye’s administration that encouraged borrowing money to buy houses. It is very dangerous."

Hong pointed out, "After the announcement of the February 4 supply measures, the real estate market has just stabilized, but following the election of Seoul Mayor Oh Se-hoon, prices of reconstruction complexes in the three Gangnam districts and old apartments over 30 years old in Yeouido, Mok-dong, Sanggye, and Wolgye-dong are fluctuating. If the current 40% LTV regulation in the metropolitan area is eased to 90%, a real estate price surge is inevitable." However, he noted that support for youth and non-homeowners was insufficient and that financial support measures need to be actively considered. He emphasized, "Policies that were not precise should be promptly supplemented, but the government's real estate policy stance must be maintained."

With President Moon Jae-in’s term having just over a year left, Hong believes that the party should take the lead in promoting policies and current issues in the party-government-office relationship. He said, "Currently, the party’s role is somewhat insufficient, but I plan to improve the inadequate discussion structure between the party and the office."

He added that the person needed in the Democratic Party now is a "problem solver for overcoming crises," and he intends to work well with floor leader Yoon Ho-jung to address the party’s innovation tasks. Hong said, "When the political reform bill was passed in 2019, I worked closely with the floor leader and secretary-general. We will coordinate easily without wasting time and create synergy to overcome the current political situation."

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