The government has recently started addressing the real estate market while closely monitoring changes in house prices in the Seoul area.
On the 12th, the Ministry of Economy and Finance held a 'Real Estate Market Monitoring Task Force (TF)' meeting with related ministries, reviewing the flow of dwelling prices and household loans.
This meeting was presided over by Lee Hyeong-il, the First Vice Minister of the Ministry of Economy and Finance, acting as Minister, with the attendance of the Director General of Dwellings and Land of the Ministry of Land, Infrastructure and Transport, the Secretary-General of the Financial Services Commission, and the Senior Deputy Governor of the Financial Supervisory Service.
The government reached a consensus during the meeting that the recent rise in apartment prices in Seoul and the increase in household loans are concerning. According to the Korea Real Estate Board, the weekly increase rate of Seoul apartment sales prices recorded 0.26% in the first week of June, up from 0.16% the previous week. Household loans also grew by nearly 6 trillion won in May, continuing the rise from the previous month (5.3 trillion won).
A government official stated, “With the stability of people’s housing as the top priority, we will comprehensively review the available policy measures from each department to ensure that speculative and market-disrupting activities or psychological instability, and excessive demand do not hinder market stability, under the principle of protecting real users.” The official further noted, “We will exert full efforts to protect real users and stabilize housing for the working class.”
Ahead of the TF meeting, Acting Minister Lee Hyeong-il commented during the price-related vice ministers' meeting, “I feel a heavy sense of responsibility for being entrusted with such an important role in these challenging economic times,” and added, “I will prioritize reviewing the critical issues of prices and real estate.” In the morning meeting that day, there was a focused discussion on the price trends and supply-demand status of major daily life price items, including agricultural, livestock, and fishery products, and processed foods.