Ha Joon-kyung, senior presidential secretary for economic growth, said on the 27th that rental housing measures would "be announced soon," responding to criticism that the government's forthcoming real estate package lacks such provisions.
Appearing on SBS's "Kim Tae-hyun's Political Show" that day, Ha said, "To control jeonse (a Korean lease system requiring a large lump-sum deposit instead of monthly rent) and monthly rent, a lot of supply must be provided." He added, "We are preparing measures that can supply housing quickly in the short term." Regarding jeonse prices, he said, "Part of the cost increase stems from trust issues such as jeonse fraud," adding, "We are also preparing measures to address this."
Asked whether the upcoming tax reform would follow a policy direction of strengthening property holding taxes, he replied, "It is a difficult issue to speak of simply." He said, "There are opinions that areas requiring high infrastructure maintenance and management costs should pay more property tax, and opinions that high home prices cause pain to younger generations, so more taxes should be paid," but he added, "On the other hand, there are voices on the housing welfare side that say it should not become too much of a burden when it is the home I live in."
He continued, "Referring to cases in other countries as well, we are reviewing a socially appropriate level of property tax," adding, "We plan to comprehensively consider housing welfare, social efficiency, and tax fairness."
Asked whether it was appropriate to set the standard for high-priced homes at 3 billion won to determine whether heavier property taxes apply, he chose his words carefully, saying, "A debate presided over by the prime minister is being held again today," and "I think it will be announced soon after listening to the various opinions of the public."
Regarding easing loan regulations, he said, "Everyone says they want to take out loans, but if we grant loans to everyone, home prices rise," adding, "We cannot drink saltwater just because we are thirsty." However, he explained, "We have several principles," and "The stance is to take another look at loans that stimulate supply rather than loans that increase demand."
He also emphasized the significance of the series of meetings with four global big tech firms held during President Lee Jae-myung's visit to San Francisco in the United States. Ha said, "If President Lee had not gone, it would have been nearly impossible for them to gather together," adding, "Some of these people do not like each other (due to competition)."
He went on to say, "These people really want to meet the Korean president," and reported, "The Microsoft CEO said he had a White House schedule and asked to 'join at least by video,' so he sent a video message."
With President Lee having completed his San Francisco schedule and moved on to Brazil, Ha forecast, "In a situation with a great deal of uncertainty related to rare earths, the president going in person to conduct (discussions) could have a considerable effect."
