President Lee Jae-myung said on the 23rd that "if home prices rise excessively because finance is used for investment and speculation rather than for housing, the people who need those homes are harmed." As the government has released three rounds of high-intensity, demand-suppression measures centered on "loan regulations," this means it will not change its hard-line stance on loans for real estate purchases for investment rather than for actual residence.
On this day, Lee presided over the "national grand forum on real estate policy" at the KBS annex in Yeouido and said, "Finance is part of the power delegated by the people as the state's currency-issuing authority." Lee said, "The lending capacity of financial institutions is, in fact, also the people's. Finance is half public," adding, "Who gets the opportunity to use finance can ultimately be reframed as a policy question."
He went on, "Is it desirable for someone among the members of the state to gain profit by using national capacity to inflict harm on someone else?" and said, "In the end, this seems like a policy issue." The comments suggest that while a variety of opinions from the real estate forum will be gathered and reflected in policy, it will be difficult to accept calls to expand real estate loans for properties that are not for residential use.
About 140 people attended the forum, including Cheong Wa Dae staff, Ministers from relevant ministries, real estate experts and academia, and ordinary citizens. With the release of a tax reform plan expected as early as the end of this month, the government said it will actively reflect proposals on supply, finance, and taxation that emerged from this forum.
Lee said, "Real estate is a truly difficult agenda, but because we are people with common sense and rationality, our people are highly receptive to what is objectively valid," adding, "If we talk candidly and listen to the other side, I think social consensus is possible." He added, however, "There are many areas where common ground cannot be found until the very end," and said, "In such cases, we appoint public officials, the people's agents, who have the power to reach a final conclusion, to make the decision."