Seong Il-jong Requests Expansion of Fixed-Rate Conversion to 800 Million~900 Million Won Housing

Seong Il-jong, Policy Committee Chair of the People Power Party, Radio Remarks on the 22nd
It Appears Discussions Have Not Reached the Consultation Stage with the Ministry of Economy and Finance

Sung Il-jong, Chairman of the Policy Committee of the People Power Party, is attending the floor countermeasure meeting held at the National Assembly on the 22nd and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Geum Bo-ryeong] The People Power Party has requested the government to expand the housing price criteria for converting variable interest rates to fixed interest rates on mortgage loans from the current under 400 million KRW to between 800 million and under 900 million KRW.

Seong Il-jong, the Policy Committee Chair of the People Power Party, appeared on MBC Radio on the morning of the 22nd and said, "We requested the Policy Committee to allow the first phase of fixed interest rate conversion for housing prices under 400 million KRW, and then to raise the amount to 800 million or 900 million KRW so that more people can benefit additionally." He added, "We will continue to negotiate with the government to help many people reduce their interest burden by securing lower fixed interest rates."

Previously, the ruling party and government announced a financial support measure for low-income earners starting in September, allowing homeowners with housing prices under 400 million KRW who took out loans with variable interest rates to switch to fixed interest rates.

Chair Seong stated, "Currently, the national average housing price is about 500 million KRW. However, since variable interest rates for homes under 400 million KRW have risen to around 7-8%, we decided to reduce the interest burden for these people by preparing about 25 trillion KRW this year and about 20 trillion KRW next year, totaling 45 trillion KRW." He emphasized, "We set the direction to reduce their interest burden to around 3% or 4% fixed interest rates."

However, it appears that discussions with the Ministry of Economy and Finance have not yet reached the negotiation stage. Chair Seong explained, "I cannot say it has reached the negotiation stage yet," but added, "We have conveyed the party's opinion to the Ministry of Economy and Finance and asked them to review it. We have also made a request to the Financial Services Commission."

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