Lee Jae-myung "Foreigners' Land and Housing Transaction Permit System Introduced in Gyeonggi-do Should Be Expanded Nationwide"

This Governor Shocked for Borrowing 8.9 Billion Won from Chinese to Purchase Gangnam Tower Palace
To People Power Party and Conservative Media: "Is Introducing a Permit System Still an Infringement on Private Property Rights?"

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Lee Jae-myung, the leading presidential candidate of the Democratic Party of Korea and Governor of Gyeonggi Province, argued that the foreigner land and housing transaction permit system, which is currently being introduced and implemented in Gyeonggi Province, should be immediately expanded nationwide in response to media reports about a Chinese national who purchased the Tower Palace in Gangnam, Seoul, through a '100% loan.'

Lee particularly rebutted the People Power Party and conservative media, who have been clamoring about 'infringement of private property rights' and 'socialism' regarding the introduction of the real estate transaction permit system, by pointing out that countries like Singapore, Australia, and New Zealand have long strictly regulated foreign real estate purchases.

On the 1st, through a Facebook post titled 'A Chinese national who bought a Tower Palace worth 8.9 billion won solely through loans? The 'Foreigner Land and Housing Transaction Permit System' implemented in Gyeonggi Province should be expanded nationwide,' he expressed dismay, saying, "Our citizens face various restrictions when buying houses due to loan regulations, but reports have emerged that a 34-year-old Chinese national purchased a Tower Palace worth 8.9 billion won solely through loans."

He continued, "Although a significant portion of foreign real estate transactions are for speculative purposes rather than actual demand, such unfairness occurs, which inevitably angers the public," and mentioned his philosophy on real estate, saying, "'In politics, worry more about unfairness than poverty.' This is a principle I have consistently tried to uphold as an administrative official."

In particular, he stated, "When dealing with real estate issues that concentrate the public's sense of deprivation due to unearned income and illegal speculation, this principle must be strictly observed," and gave a clear answer: "It's not a matter of just standing by and wondering how to prevent foreigners from getting loans from overseas banks; rather, foreigners should be required to obtain permission when transacting land or housing."

Furthermore, he introduced, "Countries like Singapore, Australia, and New Zealand already restrict foreign real estate purchases through systems, and Gyeonggi Province has designated all 23 cities within the province as foreigner and corporate land transaction permit zones since 2020," adding, "Foreigners must obtain permission from the relevant mayor or county governor to acquire land, including housing."

During this process, Lee said, "There was fierce opposition mainly from some members of the People Power Party and conservative media, claiming 'infringement of private property rights' and 'socialism,'" but asserted, "However, as a result of consistently promoting the principle that 'actual residence comes before investment and speculation demand,' foreign housing acquisitions dropped sharply from 1,866 cases in the five months before the permit zone designation (June to October 2020) to 859 cases in the five months after (November 2020 to March 2021), a 54% decrease."

He also promised, "Even if there are obstacles and various slanders from vested interests, I will steadfastly continue on the path of reform," and pledged, "We will expand systems like the 'Foreigner Land and Housing Transaction Permit System' implemented by Gyeonggi Province nationwide to suppress speculative demand and correct unfairness between our citizens and foreigners."

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