Choo Kyung-ho: "No Consideration to Lift Loan Restrictions on Apartments Exceeding 1.5 Billion Won"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is speaking at the "Broadcast Journalists Club Invitation Debate" held on the 7th at the Broadcasting Hall in Yangcheon-gu, Seoul. (Photo by Ministry of Economy and Finance)

[Asia Economy Sejong=Reporter Son Seon-hee] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated on the 7th that the speculation about lifting the ban on mortgage loans for apartments priced over 1.5 billion KRW is not currently under consideration.

At the 'Broadcast Journalists Club Invitation Debate' held at the Korea Broadcasting Center in Yangcheon-gu, Seoul, Deputy Prime Minister Choo responded to the question, "Is there any plan to lift the ban on mortgage loans for high-priced apartments over 1.5 billion KRW in consultation with financial authorities to activate transactions for actual buyers?" by saying, "I heard it through the media, but it was a somewhat hasty and premature report."

He explained, "Overall, we are still closely monitoring the market trends, so if necessary, we will first lift restrictions on areas designated as adjustment zones, and after announcing measures on the excess profit recovery system for reconstruction, we plan to decide on financial regulations after giving ample time and observing the market situation."

The mortgage loan regulation for high-priced apartments exceeding 1.5 billion KRW was included in the 'December 16 Real Estate Measures' announced by the Moon Jae-in administration in December 2019. At that time, the government banned mortgage loans for purchasing homes using ultra-high-priced apartments in speculative and overheated speculation zones to curb soaring housing prices. However, recently, as housing transactions declined due to sharp interest rate hikes, there has been speculation that the government might lift the regulation.

Regarding the real estate market outlook, Deputy Prime Minister Choo said, "Since housing prices have risen sharply so far, a slight downward stabilization is appropriate," but added, "We will be cautious about a sudden price drop."

Meanwhile, on inflation, Deputy Prime Minister Choo predicted, "I think inflation will stabilize downward as early as September or by October at the latest," but noted, "It will remain at a high level for a considerable period." He added, "There are uncertainties in gas and oil prices depending on the developments of the Russia-Ukraine situation," and cautiously forecasted, "Unless unexpected factors worsen the situation beyond the current state, the upward trend will gradually subside after September and October."

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