South Korea unveils plan to boost housing supply
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Seoul, South Korea announced plans on Thursday to increase financial aid for construction projects and simplify regulations for young homebuyers in an effort to stabilize the overheated housing market. President Lee Jae Myung's administration recently suggested higher taxes for affluent homeowners, who have been facing falling approval ratings due to soaring property prices and stock market fluctuations.
The Financial Services Commission (FSC) detailed the new measures, pledging to raise policy support for financing construction projects to 47.8 trillion won, up from the planned 26.3 trillion won. The objective is to boost housing supply and provide a comprehensive financial package for young individuals and those with genuine demand.
The FSC also unveiled financial support measures, including new policy loans, for young people and newlyweds purchasing homes for personal use. Simultaneously, stricter regulations will be maintained on speculative demand.
South Korea, among the world's most indebted nations, has complex borrowing rules aimed at curbing household debt. The FSC intends to manage debt growth at approximately three percent this year, an increase from the previous target of 1.5 percent. President Lee's approval ratings plummeted to a one-month low of 51 percent in a Gallup Korea survey on July 24. Housing market policies were cited as a primary factor, following a June increase in house prices for the first since November 2021.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
