Real Estate Debate Hosted by Prime Minister Held

At the real estate policy public debate presided over by Prime Minister Han Duck-soo and held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul on the 27th, Financial Services Commission (FSC) Chairman Lee Bok-hyun revealed that the government is considering targeted measures to alleviate difficulties for actual demanders, such as young people and newlyweds. Chairman Lee explained that there is a risk of a vicious cycle of soaring house prices if loan regulations are relaxed amid a shortage of supply and excess liquidity.

In particular, he stated that the issue of loans for the balance of payments for complexes prior to the announcement of tenant recruitment follows existing regulations, but it arose in the process of banks responding to aggregate loan caps. Chairman Lee said he would promptly discuss with the banking sector to resolve the issue of outstanding balance loans.

Regarding cases where individuals are unable to receive benefits as first-time homebuyers due to owning a share of a house inherited during their minority, Chairman Lee proposed a plan where the principle is maintained, but if a bank's credit committee reviews the case and deems it valid, the loan would be permitted.

Chairman Lee assessed that while consumer finance can stimulate the market, supplier finance serves a positive function in helping new homes enter the market. In particular, he emphasized the role of supplier finance support, stating that project finance (PF) support for construction companies could contribute to promoting supply in order to ensure a smooth supply of non-apartment housing.