Hong Nam-ki: "Improving the Price Ceiling System to Increase Apartment Supply... Exploring Additional Liquidity Measures" (Update)

Opening Remarks at the 30th Real Estate Market Inspection Meeting of Relevant Ministers on the 15th

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, emphasized the role of the private sector in apartment supply and announced plans to reform the unreasonable aspects of the price ceiling system for pre-sale apartments and simplify administrative procedures. Additionally, he hinted at preparing further measures to prevent a balloon effect in the non-bank sector due to the government's existing liquidity management policies, such as the strengthening of the Debt Service Ratio (DSR).

On the morning of the 15th, Hong presided over a meeting of related ministers to review the real estate market at the Government Complex Seoul in Gwanghwamun. In his opening remarks, he stated, "The role of the private sector is very important for the early supply of already announced housing supply volumes and securing additional supply capacity. We have repeatedly collected and accumulated opinions from experts and the industry, and we will strive to resolve the raised difficulties in two ways: expanding urban housing supply and accelerating the speed of apartment supply."

He emphasized, "To increase the speed of apartment supply, we will improve the unreasonable parts of the high-priced pre-sale price management system by HUG and the price ceiling system for pre-sale apartments, and make the integrated review of permits and approvals, which was previously optional, mandatory in principle to simplify administrative procedures." He continued, "To respond to housing demand from one- to two-person households and to contribute to short-term housing supply, we will boldly relax unnecessary regulations such as area standards and floor heating for non-apartments, and strengthen financial and tax support for developers to revitalize urban housing supply."

He also hinted at additional measures related to household loan management. He said, "The government will strongly promote already announced measures such as the strengthening of DSR and actively seek additional measures to block balloon effects in the non-bank sector if necessary. However, we will manage to minimize the impact on actual demand rental loans during this process."

He added, "Household loans increased by 8.5 trillion won in August, reducing the increase compared to the previous month (15.3 trillion won), but the level remains high compared to before COVID-19. We will continue to closely monitor loan trends and implement more meticulous management until the loan growth stabilizes."

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