Finance Chiefs Weigh In on Speculation
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Vice Finance Minister Kim Gwang-lim said Thursday that the government would consider taking additional measures to counter real-estate speculation in watchlist areas even if housing costs do not go up. The government has designated 53 areas to be on the speculation watchlist, the most prominent of which is Gangnam district in southern Seoul. Also, Finance Minister Kim Jin-pyo spoke against suggestions that extreme measures be taken to combat high housing prices. In a radio interview, Kim said that the government was going to apply additional real estate laws if housing costs go up, but that much criticism was still being voiced that housing costs in speculation districts such as Gangnam should be brought down. Analysts interpreted this as meaning that measures may be introduced if housing prices do not fall. In a comprehensive plan for real estate announced Wednesday, the government said that strong additional measures, such as the housing exchange permit and reconstruction profit redemption systems, will be taken if the real estate market becomes unstable again. Finance Minister Kim Jin-pyo met with reporters on Wednesday and said that the government was doing its best to deal with the problems. “Many persons, including young Netizens, are demanding strong policy,” he said. “But if we do so, it would only be a socialistic method.” Kim’s choice of words aroused controversy, so the Ministry of Finance and Economy made a clarification: “It meant that we cannot restrict an individual’s possession of property, as socialist states do.” In a radio interview on Wednesday, Kim said that if real estate prices rise despite the new measures, then the one household-one house added tax system will be reformed and a strong two-level measure will be taken. On questions about market interest, he said, “If we were to raise interest rates, we would fear that the difficulties of the entire economy would grow heavier. To catch real estate inflation through increased interest rates, you must raise rates by 2-3 percent - but that would result in difficulties for entrepreneurs.” More : english.chosun.com |