Kim So-Young, Vice Chairman of the Financial Services Commission, "Regulatory Normalization for a Soft Landing in Real Estate"

"Real Estate Market Risks Must Also Be Thoroughly Managed"

[Asia Economy Reporter Yoo Je-hoon] Kim So-young, Vice Chairman of the Financial Services Commission, stated on the 4th, "We will normalize related regulations such as tax reform and adjustment of regulated areas to ensure the real estate market can achieve a soft landing."

Vice Chairman Kim made these remarks while attending the policy seminar titled "2023 Cheer Up Our Economy, Advancing Korean Finance," hosted by the People Power Party Policy Committee and Yeouido Institute, and organized by Assemblyman Yoon Chang-hyun's office at the National Assembly Members' Office Building in Yeongdeungpo-gu, Seoul. He emphasized, "The risks in the real estate market must also be thoroughly managed."

Kim diagnosed, "The year 2022 was a challenging year due to complex crises," adding, "Global inflation and the resulting sharp interest rate hikes increased the pain for ordinary citizens and vulnerable borrowers, and asset markets such as real estate and stocks shifted into a downturn."

He continued, "As corporate bond and commercial paper (CP) interest rates rose sharply, many companies faced difficulties in raising funds," noting, "Although the government and the Bank of Korea closely cooperated to implement market stabilization measures, including a liquidity supply program worth 50 trillion won, and the situation has gradually stabilized, it is still difficult to say that the risk has completely disappeared."

Regarding this year's policy direction of the Financial Services Commission, Vice Chairman Kim said, "We will focus on financial market and livelihood stabilization, financial innovation, and pursue policies accordingly," adding, "Since a crisis can materialize at any time, we will respond proactively. We will continue market stabilization measures through cooperation with related institutions to prevent the realization of a liquidity crisis."

Additionally, Vice Chairman Kim stated, "We plan to continue initiatives such as special home mortgage loans and refinancing loans for small business owners to prevent interest rate hikes from being passed on to vulnerable groups," and added, "In preparation for prolonged instability, we will continue monitoring the soundness of financial institutions and proactively enhance the financial sector's capacity to absorb losses."

[Image source=Yonhap News]

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