Opposition, Mortgage Discrimination Offensive.."Let's Regulate Foreigners"

[Financial News] The People Power Party criticized the Lee Jae-myung government's strong real estate loan regulations for not applying to foreigners, calling it 'discrimination against nationals'. They are particularly emphasizing the high proportion of Chinese among foreigners purchasing domestic real estate to strengthen their offensive.
The People Power Party criticized the government's regulation announced last month, which limits the mortgage loan limit to 600 million won or less, at the 'Relay Seminar to Resolve Discrimination Against Nationals' led by Kim Eun-hye, Deputy Chief of Policy. They argue that while it blocks the homeless from buying homes, foreigners are not subject to the regulations, leading to discrimination.
Kim, Deputy Chief of Policy, pointed out, "Recently, the Lee Jae-myung government's strong loan regulations have led to harm for young people, the homeless, and the middle class," adding, "However, it has become a windless zone where not even a single breeze touches foreigners."
Assemblyman Joo Jin-woo expressed concern at the event, saying, "If house prices are controlled by demand suppression measures, it could lead to a balloon effect where rent prices skyrocket, resulting in adverse effects," and "Foreigners are free in all transactions, making the discrimination felt by the people much larger."
In fact, the demand for real estate purchases by foreigners is strengthening. According to the Court Registration Information Plaza, as of the end of 2023, there are 98,581 foreigners owning domestic housing, with the number of owned houses reaching 100,216. The pattern of foreign real estate transactions shows a high proportion of Chinese. In the first half of last year, 66.7% of 6,569 cases were by Chinese. The People Power Party has even highlighted this as a security issue.
Kim Jeong-jae, Chairman of the Policy Committee, pointed out, "Entrusting the land, one of the three elements of a nation, to foreigners is a big problem." Kim, Deputy Chief of Policy, also emphasized, "We will work together to ensure that the rights of the people are not eroded by foreign speculation."
Members of the People Power Party have consecutively proposed related bills. Assemblymen Kim Eun-hye, Kim Mi-ae, and Joo Jin-woo submitted the 'Real Estate Transaction Reporting Act Amendment', which transitions foreign real estate transactions from a reporting system to a prior approval system and restricts foreigners from countries that do not guarantee the rights of our nationals from acquiring domestic real estate. Other legislative efforts include △Land Transaction Permit System △Mandatory Residence and Transfer for More Than One Year.
The Democratic Party also has Assemblyman Lee Eon-ju proposing a bill that includes a foreign real estate transaction permit system and the principle of reciprocity. In response, Kim, Deputy Chief of Policy, suggested that since both ruling and opposition parties have proposed bills with the same intent, they should be processed promptly.


haeram@fnnews.com Lee Haeram Reporter