The People Power Party criticized the first real estate-related lending regulations of the Lee Jae-myung government and launched a task force for real estate market stabilization response.
Chairperson Song Eon-seok of the People Power Party said at a ceremony for the appointment of the task force held at the National Assembly on the 14th, "In a situation where the average sale price of apartments in Seoul exceeds 1.3 billion won, limiting the loan ceiling to 600 million won under the 'June 27 loan regulation' is no different than telling actual users not to even dream of buying their own homes."
Chairperson Song emphasized, "The government says it will control house prices through lending regulations, but the reality is leading to a result that only wealthy cash buyers can purchase homes, which is anti-people. We will continue to work to correct the real estate mismanagement of the Lee Jae-myung government and help the public fulfill their dream of homeownership."
Commissioner Kwon Young-jin said, "Since the June 27 regulation, actual users cannot buy homes and are being pushed into the rental market, while tenants who can't get Jeonse loan are being forced into expensive monthly rent, worrying that instead of controlling house prices, it is only ordinary citizens and young people who are being affected."
He added, "Since the COVID-19 pandemic, the gap in housing prices between Seoul and provinces has widened more steeply than in any other major country," and criticized, "While housing prices in the metropolitan area are skyrocketing, unsold properties have been steadily increasing in the provinces until recently."
The People Power Party presented strategies to respond to the real estate market including ▲ continuous stabilization measures for the metropolitan area ▲ restructuring unsold inventory in provinces ▲ activation measures for the dwelling market based on actual demand. Additionally, they argued that regulations on foreigners who can purchase real estate through domestic financial institutions should also be strengthened.
The Lee Jae-myung government announced a household debt management plan related to real estate on the 27th. Key points include ▲ restrictions on jeonse loans for multiple homeowners ▲ reduction of jeonse loans in the metropolitan area and regulated regions to within 30 years ▲ a 600 million won limit on jeonse loans for home purchase purposes ▲ mandatory transfer within six months upon executing jeonse loans in the metropolitan area and regulated regions.