Choo Kyung-ho: "Boldly Lift Regulatory Restrictions Centered on the Seoul Metropolitan Area"

[Asia Economy Sejong=Reporter Kim Hyewon] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said on the 10th, "Considering recent market conditions, we will boldly lift regulations mainly in the Seoul metropolitan area."

On the same day, Deputy Prime Minister Choo held a real estate-related ministers' meeting at the Government Complex Seoul and stated, "We intend to implement customized measures to firmly ensure a soft landing of the real estate market while stabilizing supply and demand in the mid to long term and providing strong protection for low-income and genuine demanders."

Deputy Prime Minister Choo explained, "We will ease regulations that hinder genuine demanders from purchasing homes, such as advancing the unification of the loan-to-value ratio (LTV) of 50% for mortgage loans for non-homeowners in regulated areas, originally scheduled for early next year, and allowing mortgage loans for apartments exceeding 1.5 billion won in speculative overheated districts from early December." He added, "We will expand subscription opportunities by abolishing residency requirements for non-priority subscription and relax acquisition tax reduction conditions for first-time homebuyers."

Additionally, Deputy Prime Minister Choo said, "To prevent excessive contraction of the housing supply base due to unsold units, we will strengthen public guarantees for ongoing real estate development projects by providing an additional 10 trillion won worth of real estate project financing (PF) guarantees." He also added, "We will complete the reform of safety inspection regulations, which act as entry barriers to high-demand redevelopment projects, by the end of the year, and abolish the mandatory pre-subscription for public land aimed at early housing supply." Regarding current registered rental business operators, most benefits of which have been reduced or abolished, improvement plans will be presented within the year considering the effects of past system implementation and housing market conditions.

Deputy Prime Minister Choo conveyed, "To alleviate housing burdens for low-income and middle-class households, if normal repayment of principal and interest becomes difficult due to rapid increases in interest rates and repayment burdens, debt restructuring through banks can be utilized, and the special guarantee limit for jeonse loans with low interest rates will be expanded from the current 100 million won to 200 million won." The separate 200 million won loan regulation limit applied to mortgage loans for homeowners' living stabilization funds will also be abolished.

Deputy Prime Minister Choo emphasized, "Since the real estate market is closely linked with the real economy and financial markets, the government will closely monitor market trends with related ministries and take timely measures according to the prepared phased response plan if additional actions are necessary based on market conditions."

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