Park Hapsu, co-chairman of the Korea Real Estate Experts Club (adjunct professor at the Graduate School of Real Estate at Konkuk University), said, "If financial authorities plan to reduce the total household lending target for the second half by 50% from the original plan, it could accelerate the recession."

Chairman Park noted this during the 6th forum of the Real Estate Experts Club held on the afternoon of the 21st under the theme 'This Month's Hot Real Estate Issues.'

Park Hapsu, co-chair of the Korea Real Estate Expert Club (adjunct professor at the Konkuk University Graduate School of Real Estate), gives a lecture on the topic of 'Real Estate Hot Issues of the Month' on the 21st afternoon./Courtesy of Real Estate Expert Club

Chairman Park emphasized that "securing liquidity is essential to overcome the recession," adding that, "If the household lending target is reduced, the limits could be mostly exhausted in the third quarter."

Financial authorities announced last month that they would reduce the total household lending in the second half by 50% as part of the 6/27 real estate measures. The five major banks predicted the annual increase in household loans (excluding policy loans) to be about 14.5 trillion won this year, with around 7.2 trillion won expected for the second half, but this has been drastically cut to about 3.6 trillion won.

There were also evaluations of the 6/27 measures, which limited housing mortgage loans in the metropolitan area and regulated zones to a maximum of 600 million won.

Chairman Park remarked, "As high-income earners, including professionals, find it impossible to secure large loans, cash-rich individuals will gain an advantage," and stated that applying this regulation to relocation expenses for redevelopment projects needs improvement.

He added, "The government should improve unreasonable aspects of the lending regulations to stimulate the economy."

Meanwhile, the Korea Real Estate Experts Club, formed in February, is composed of professionals in the real estate field, including developers, architects, appraisers, tax accountants, lawyers, financial experts, construction companies, certified brokers, and investment firms. Chairman Park, Mo Hyun-sook, chairwoman of the Korea Real Estate Investment Trusts (REITs) Investment Advisory Association, and Jo Yong-moon, CEO of the real estate artificial intelligence service 'Blue Bear,' serve as co-chairs, and the club conducts real estate-related lectures once a month.

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