People Power Party lawmaker Joo Jin-woo criticized Lee Jae-myung's government's high-intensity loan regulations on the 6th, calling it "a déjà vu of the real estate policy failure of the former government led by Moon Jae-in."
On that day, lawmaker Joo stated on his social media service that "President Lee Jae-myung praised an executive from the Financial Services Commission," adding, "What is so admirable about the June 27 loan regulation that allows only cash-rich individuals to buy houses? The real issue starts from now."
Earlier, the government announced strict loan regulations on June 27, limiting the housing mortgage loan (dwellings) cap to 600 million won.
Lawmaker Joo expressed concern about the worst balloon effect, where jeonse prices are extensively converted to monthly rent, stating, "The explosion of jeonse and monthly rent has become inevitable."
He continued, "There are only about 54,000 jeonse listings for apartments in the metropolitan area, and 13,000 listings dropped in just June," adding, "The supply of new units in the metropolitan area for the second half of the year has decreased by 40% compared to the previous year. If demand concentrates, jeonse prices will rise, and the conversion to monthly rent will increase."
He added, "The June 27 regulation has ignited the situation, and if jeonse is converted to monthly rent, ordinary people will find it hard to cope, and since the government is forcing household loans to be reduced by 50%, they now have to repay debts while paying rent."
Lawmaker Joo remarked, "Voices of concern are growing over the jeonse and monthly rent crisis during the fall moving season," stating, "Now is not the time for self-congratulation, but a transition to a policy centered on ordinary people, not cash-rich individuals, is necessary."