"Easy Jeonse Loans Need Adjustment"... Emphasis on Fast-Paced Supply

[Anchor]

President Lee Jae-myung also emphasized the need to overhaul jeonse (lump-sum housing deposit) loans. He stated that overly accessible jeonse loans are a cause of soaring housing prices and that it is time to adjust them. He also promised a fast-paced approach to supply measures, such as shortening the construction period for the third-phase new towns.

Reporting further is Kang Cheongwan.

[Reporter]

At a real estate debate today (the 23rd), President Lee Jae-myung mentioned the need for policy adjustments, pointing out that because jeonse loans are too easy to obtain, housing prices have skyrocketed and even jeonse fraud has emerged.

[President Lee Jae-myung: While jeonse loans have the aspect of being a support policy for stabilizing the housing of ordinary citizens, they have also become a major cause of soaring housing prices, and I think it is time to adjust this now.]

In particular, he asked the attendees for their opinions on whether jeonse loans even need to be extended to people who already own homes.

[President Lee Jae-myung: If you think we shouldn't provide them, please raise your hand.]

However, he added a caveat that "pinpoint support" is necessary for the housing stability of young people, newlywed couples, and ordinary citizens who genuinely need to secure jeonse loans.

The debate became heated regarding the reality of housing supply measures.

[Koh Jong-wan / Private Real Estate Expert: A shortage of supply is the biggest cause. There is a concern that crazy housing prices and crazy jeonse prices could potentially recur over the next three to four years...]

[Chae Sang-wook / Private Real Estate Expert: There is entirely no content regarding how many units of private rental housing will be built during the five years of the Lee Jae-myung administration, in which regions they will be built, or what types they will be.]

[President Lee Jae-myung: It's not that we are indifferent; existing systems do exist to some extent. But they are probably not working well. The fundamental issue is that there is almost no land left to build new properties.]

[Chae Sang-wook / Private Real Estate Expert: Within urban areas, there isn't only residential land; there is also a lot of non-residential land, idle land, and land whose usage can be converted.]

[President Lee Jae-myung: Well, those kinds of sites will need to be discovered.]

While lamenting that it is difficult to find housing sites in Seoul, making the limits of supply clear, President Lee also promised a fast-paced approach, such as shortening the construction period for the third-phase new towns.

[President Lee Jae-myung: (The third-phase new town construction period) is said to take sixty-some months, and I want to tell you that we are currently reviewing internal plans to cut that down to less than half.]

Regarding the difficulties in securing new housing sites, President Lee mentioned that he will personally board a helicopter to tour the capital area, adding that they are doing their utmost to discover additional sites to increase housing supply.

(Camera reporting: Jung Sang-bo, Ha Ryung | Video editing: Nam Il)
※ Please note: This article was translated by AI and may contain errors.