Vice Minister Lee Sang-kyung of the Ministry of Land, Infrastructure and Transport is facing controversy over remarks made recently on a YouTube channel regarding the Oct. 15 real estate measures.
According to related industries on the 20th, the Vice Minister appeared on the YouTube channel "BuilknamTV" on the 19th, the previous day, and explained the Oct. 15 measures that simultaneously designated all of Seoul and 12 areas in Gyeonggi Province as regulated areas and land transaction permit zones. While acknowledging that the measures are harsh for some members of the public, criticism is mounting that the remarks, including "When housing prices stabilize later, you can buy then," are stoking anxiety among people without homes.
In response to the question, "With this regulation, loan limits have been reduced by as little as tens of millions of won to as much as hundreds of millions of won, leading many to interpret it as saying only people with lots of cash should buy homes. What do you think?", the Vice Minister said, "I think the loan-to-value (LTV) ratio for high-priced dwellings is of little significance," adding, "In any case, end users with strong cash mobilization can purchase a home regardless of the regulations."
He continued, "However, in No-Doh-Gang (Nowon, Dobong, and Gangbuk districts in Seoul), where dwelling prices are lower, there are end users who tried to buy a home using long-saved funds and loans, and from their perspective there is an impact," adding, "From the standpoint of a policymaker, this (regulation) can be a harsh part for these people. We ask for your understanding."
The Vice Minister said, "Those who are disappointed because they cannot buy a home right now due to being short by tens of millions of won or 100 million to 200 million won seem to think dwelling prices will trend upward," adding, "They are stressed because they are trying to buy at this point in time."
He then emphasized, "If the government stabilizes housing prices through policy, you can buy then," adding, "If we assume prices hold, and housing prices remain steady, then my income will have risen in the meantime, and after that higher income accumulates, you can buy a home in the future. Opportunities will come around anyway. There is no need to react sensitively, is there?"
After the video was released, backlash spread mainly through online real estate communities. Criticism is continuing over the fact that the Vice Minister owns, under his spouse's name, a Pangyo Prugio Grandble apartment in Baekhyeon-dong, Bundang District, Seongnam, worth 3.35 billion won.