Kim Yong-beom: We must desperately find solutions for real estate; rental measures under review

Kim Yong-beom, South Korea's chief policy secretary, stressed the urgent need for decisive measures to address the nation's real estate market, warning that current trends could worsen by year-end and into next year. Speaking on YTN radio, Kim stated, "We must create special measures in terms of supply." He pointed to a significant current account surplus, projected to be three times larger than the previous year, and a three to fourfold increase in listed companies' profits as key factors driving money into the real estate sector. This influx of capital, combined with a stock market rally creating a "wealth effect," is fueling property market speculation. Kim expressed concern that concentrated investment in specific regions and price brackets could lead to widespread negative side effects, particularly impacting existing residents through rising rental costs. "It's not just that people can't buy homes; those who live there are also suffering from rising rents and monthly payments," he explained. To counter these issues, the government is exploring various strategies. Kim mentioned the importance of increasing the supply of long-term rental housing that appeals to younger generations. Additionally, he indicated that the administration is re-evaluating comprehensive measures to support those struggling with current rent prices, including leveraging the Korea Land and Housing Corporation (LH) to supply more rental properties, even for non-apartment housing like officetels. The focus is on providing layered solutions to stabilize the rental market and ease the burden on tenants.

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We must create special measures in terms of supply.