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| Participants in a three-way meeting between Cheong Wa Dae, the government and the ruling Democratic Party of Korea (DPK) hold hands together before a meeting at the National Assembly, Thursday. From left are Finance Minister Kim Dong-yeon, DPK policy committee chief Kim Tae-nyeon, Prime Minister Lee Nak-yon, DPK chief Lee Hae-chan, DPK floor leader Hong Young-pyo and Cheong Wa Dae policy chief Jang Ha-sung. / Yonhap |
By Park Ji-won
Cheong Wa Dae and the ruling Democratic Party of Korea (DPK) agreed Thursday to explore measures to stabilize the housing market, including raising taxes further for owners of multiple homes.
During a policy coordination meeting, presidential chief of staff for policy Jang Ha-sung called for measures to curb speculative demand on the housing market.
"The government will strengthen its position to thoroughly curb speculative demand in the property market while protecting real demand," Jang said.
"If necessary, the government will consider introducing strong follow-up measures. We will do our best to stabilize housing prices and boost residential stability for ordinary people."
DPK Chairman Rep. Lee Hae-chan suggested the government increase real estate taxes for the owners of multiple homes or expensive homes, saying strong policies should be introduced to stabilize the market.
"If the market started to inflate due to speculation, there should be immediate government intervention. There is a need for the government to raise comprehensive real estate taxes for the owners of more than three homes or expensive homes. I hope the government will strongly consider the measure," Lee said at his first meeting with key officials from Cheong Wa Dae and the government.
"We need to find ways to continue to provide public housing for the youth and newlywed couples to give them a place to stay they don't have to own."
Lee's move is likely backing up the government initiatives to curb the rise in housing prices and stabilize the market.
The government announced Monday it has designated four districts in Seoul as anti-speculative areas subject to stricter financial rules such as loan limits.
Seoul Mayor Park Won-soon also announced last Sunday he was suspending development plans in the central areas of Yongsan and the financial district of Yeouido amid soaring apartment prices the areas in recent weeks. He also added his government will provide more public housing facilities as alternatives.
During the meeting, senior governmental officials and the ruling party decided to hold a monthly coordination meeting, while having weekly closed-door meetings between senior officials from the government and the DPK.
