Koo Yun-cheol, Deputy Prime Minister for the economy and Minister of Strategy and Finance, said on the 23rd that there is a need to address the practice of excessive borrowing for real estate investment that is not for actual residence.
Koo said at a National Assembly Strategy and Finance Committee briefing that "it is true that a lot of real estate investment has been made by taking on excessive leverage," and added, "there is a need to normalize real estate leverage for places other than where one lives."
Regarding the future policy direction, Koo said, "we will consult with the Financial Services Commission on other tasks such as supplying rental housing," adding, "we will normalize, as much as possible, the parts where finance flows into real estate." It appears to indicate an intent to examine the flow of funds into the real estate market.
He also mentioned changes in market perception. Koo said, "in the past, there were excessive expected gains from real estate, but now there is a perception that this is no longer the case."
However, on the possibility of overhauling the property holding tax system, Koo said, "we are hearing various views," without presenting a specific direction.