Opposition "Need to Expand Real Demand Finance and Housing Supply.. Also Regulate Chinese Purchases"

[Financial News] The People Power Party argued on the 14th that it has become difficult to buy a home due to the Lee Jae-myung government's 600 million won mortgage limit and that financial support for real demanders and housing supply should be expanded.
Kim Jeong-jae, Chairman of the Policy Committee, emphasized at the first meeting of the Real Estate Market Stabilization Response Task Force (TF) held at the National Assembly that "to correct the market, financial support for real demanders and the expansion of quality housing supply must go hand in hand," and "regulation ignoring supply is not the solution."
Due to the Lee Jae-myung government's loan regulations, the loan limits for major real demand groups such as young people and newlyweds have also decreased, and the trend of converting lease properties to monthly rentals is becoming evident as conditional lease loans are prohibited. It has become difficult not only to buy a home but also to find a lease. On the other hand, foreigners who are not subject to regulation have gained a comparative advantage in the domestic real estate market.
In response, Chairman Kim pointed out, "Under the pretext of suppressing demand, they targeted real demanders such as young people, newlyweds, and the working class, and as leases rapidly convert to monthly rentals, housing instability is expected to worsen," and "on the other hand, the policy is lenient towards cash shopping for real estate by foreigners, including Chinese, which is, in a word, reverse discrimination." He continued, "We will never overlook the anti-citizen, anti-market real estate policy of the Lee Jae-myung government, which is trampling on the hope of the people to buy a home."
Song Eon-seok, Chairman of the Emergency Response Committee and Floor Leader, also stated, "The current reality is that nationals are made to give up buying a home due to loan regulations, while foreigners accumulate assets through cash purchases," and "a strategy is needed to expand quality housing supply along with rational financial support considering real demanders, rather than simple loan regulations."
Kwon Young-jin, who leads the TF, noted, "While strong loan regulations may temporarily calm the real estate market, without fundamental measures, Moon Jae-in government Season 2, where house prices soared, could be reenacted at any time," and "market order must be restored with groundbreaking supply measures and speculative demand suppression measures that ensure market trust."
He also argued, "To address the local unsold housing issue, restructuring and real demand-based housing market activation measures are urgent," and "even temporarily, we need to promote drastic tax support and financial policies, and break the vicious cycle of concentration in the metropolitan area by promoting infrastructure development centered on local hub cities."
Regarding the controversy over reverse discrimination against nationals compared to foreigners, "The TF will prepare effective legislation by consulting with the Policy Committee to convert foreign real estate purchases to a pre-approval system or strengthen purchase conditions by specifying the principle of reciprocity in the law," he stated.
Since the Chinese government strictly regulates domestic real estate purchases, it is argued that corresponding regulations should be applied to Chinese real estate purchases in our country.
The TF plans to discuss foreign purchase regulations and solutions for regional imbalance in three forums by early next month and prepare policy alternatives. Specific legislation for finance, housing supply, and tax support will be drafted by the National Assembly's Political Affairs Committee, Land, Infrastructure and Transport Committee, and Planning and Finance Committee.

uknow@fnnews.com Kim Yoon-ho Lee Hae-ram Reporter