The Presidential Office said on the 27th regarding the high-intensity housing mortgage regulation announced by the Financial Services Commission, "This is not a measure from the Presidential Office." The measure limits housing mortgages to a maximum of 6 million won and is the first real estate policy of the Lee Jae-myung administration.

Spokesperson Kang Yu-jung holds a briefing related to the month of national defense and the President's invitation at the presidential office building in Yongsan, Seoul, on the 27th. /Courtesy of News1

Spokesperson Kang Yu-jeong, during an afternoon briefing at the Yongsan Presidential Office, stated in response to a question regarding the Financial Services Commission's loan regulation plans and new town development plans, "The Presidential Office has not announced any stance or policy to avoid confusion regarding real estate measures," adding, "Right now, we are in a situation of observing various measures and opinions from the Ministry of Economy and Finance and others."

Spokesperson Kang noted, "There was no special report (to the president in official meetings such as the Cabinet meeting). There was nothing special in the morning meeting either," and added, "I see it as a kind of measure created in response to a series of flows." He continued, "It is not particularly a part where we have a stance or direction on it," and said, "We will observe what effect it brings, and if a response is needed, the Presidential Office's reaction will come out."

Relatedly, a source from the Presidential Office said, "The overall flow was done by the Ministry of Economy and Finance, and it is correct that the Financial Services Commission announced the regulation measures."

On the same day, the Financial Services Commission announced a plan to strengthen household debt management, which limits housing mortgage limits to 600 million won in metropolitan and regulated areas. In particular, the loan-to-value ratio (LTV) for first-time homebuyers was reduced from the existing 80% to 70%, and loans for multiple homeowners and non-resident purposes were completely banned. It also established residency obligations and blocked conditional jeonse loans.

There was controversy over whether the real estate policy, which contains ultra-large financial regulations, was announced without reporting to the president. In response, the Presidential Office issued a statement saying, "The Presidential Office is closely communicating with the ministries regarding the Financial Services Commission's household debt measures."

Meanwhile, President Lee Jae-myung has repeatedly conveyed messages during the presidential election process of not wanting to "fight against the market." This is intended to indicate that he will not repeat the real estate failures of the Moon Jae-in administration. He also stated that he would create alternative investment options outside of real estate. President Lee lost to then-candidate Yoon Suk-yeol by a margin of 0.7 percentage points in the 20th presidential election, and his party believed that the previous administration's failure in real estate policy had a decisive impact.

On the 8th of last month, while he was a presidential candidate, President Lee appeared on the economic YouTube joint talk show "Economic Talk Talk" and said, "There is no way to stop approaching homes as an investment or speculation tool. Trying to forcibly stop that has caused many side effects." He particularly mentioned his existing belief that "homes are for residential use," and said, "Ideologically, that is correct, and I have made many arguments based on that thought, but that is not possible. It is just a principle, but reality is not so."