Presidential Office: Rental market measures to be announced soon; will review unreasonable loan practices

The South Korean government is preparing to unveil a new set of measures aimed at stabilizing the volatile rental housing market. Ha Joon-kyung, the Presidential Office's senior secretary for economic growth, stated on Tuesday that a comprehensive plan is in the works and will be announced shortly.

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To stabilize the rental market, we need to increase supply. We are preparing measures that can be implemented quickly in the short term.

"To stabilize the rental market, we need to increase supply. We are preparing measures that can be implemented quickly in the short term," Ha explained during an SBS radio interview. He acknowledged that recent "jeonse" fraud incidents, where tenants lost their deposits, have increased costs and eroded trust, and assured that the upcoming package would address these concerns.

The government also intends to re-examine current lending policies. While emphasizing the need for responsible lending, Ha noted that "if there are unreasonable aspects, they must be corrected." The focus will be on encouraging loans that stimulate housing supply, rather than those solely boosting demand. He also suggested that situations where loan agreements are suddenly broken due to bank circumstances require solutions, indicating a potential review of existing commitments.

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if there are unreasonable aspects, they must be corrected.

Regarding property taxes, Ha stated that the government aims for a "socially appropriate level" of holding taxes, considering housing welfare and tax equity. He declined to confirm media reports suggesting a 3 billion won threshold for increased taxes on high-value homes, citing that various options are under consideration.

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We are preparing various plans, so it is difficult to confirm that now.

In separate remarks, Ha highlighted the significance of President Lee Jae-myung's recent meetings with leaders of major global tech companies during his U.S. trip. He suggested that such gatherings would have been nearly impossible without the president's direct engagement. The meetings, which included CEOs from Nvidia, OpenAI, Anthropic, and Broadcom, aimed to foster investment and cooperation in South Korea's "three mega-projects."

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If the president hadn't gone, it would have been almost impossible for them to gather.