South Korean minister clashes with ruling party over housing mortgage rates

A heated exchange occurred in South Korea's National Assembly as a ruling party lawmaker confronted the Minister of Land, Infrastructure, and Transport over a controversial change in mortgage interest rates for a public housing project. The "New Home Sharing Type" project, aimed at providing affordable housing, initially advertised fixed mortgage rates of 1.9-3.0% for up to 40 years, covering 80% of the home price.

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If you were confident, you should have given us the announcement. Can the government's promises be overturned at any time because the terms can be changed like mobile phones or financial products?

Rep. Kim Eun-hye of the People Power Party pressed Minister Kim Hyun-yeok on whether he recalled the original announcement. Kim Hyun-yeok responded that the announcement contained additional details, including a provision for adjusting interest rates based on prevailing loan rates if certain conditions changed. This explanation did not satisfy Kim Eun-hye, who likened the situation to changing mobile phone or financial product terms, suggesting government promises could be easily broken.

"If you were confident, you should have given us the announcement," Kim Eun-hye stated, questioning the government's integrity. She drew a parallel to the President's broken promise on real estate policy, implying that officials might feel emboldened to disregard public concerns. She insisted the government must honor the original mortgage product terms.

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There is an additional clause that states it will be based on the loan interest rate at the time if there are certain changes.

The minister acknowledged the government's responsibility for the unclear communication, stating, "If there is something the government must take responsibility for, we will definitely take responsibility." However, he also urged for a more objective discussion to find solutions, proposing a meeting with clients to apologize and listen to their concerns. He admitted the government's failure to make the "other matters" clause clear to clients was a problem.

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If there is something the government must take responsibility for, we will definitely take responsibility.

Kim Eun-hye criticized the minister's response, saying, "So, poor eyesight is the fault of the people?" She demanded that the minister have the courage to correct the policy from the public's perspective, even if it meant challenging the President's prior statements. The minister's request for additional speaking time to further explain was denied by the committee chairman.

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The government's policy trust has hit rock bottom because the government completely ignores the desperation of the people.