By Jung Sung-ki
Staff Reporter
President Lee Myung-bak renewed his pledge Friday that his government would increase new housing supply significantly.
On the current global financial market turmoil, Lee said a steep drop in property prices leading to the U.S.-generated banking crisis is unlikely in South Korea, because of the conservative lending practices by local banks.
``The government will strive to help newlywed couples and all ordinary households buy their own homes by expanding new housing supply drastically,'' Lee said in his breakfast meeting with Park Hee-tae, chairman of the governing Grand National Party (GNP), at Cheong Wa Dae.
The meeting was the second between Lee and Park since the first one on Aug. 12.
Lee has repeatedly stressed the need for sweeping urban redevelopment and public infrastructure projects as a means to stimulate the sluggish economy.
``President Lee again emphasized his government's housing supply policy. He is now considering various practical measures to help low-income families buy their own house at reasonable prices,'' presidential spokesman Lee Dong-kwan said.
``The president wants to eliminate homeless households during his term.''
The nation's housing supply rate reached 108.1 percent last December. But given the 3.3 million one-person households and other statistical loopholes, the actual home ownership ratio is estimated at slightly over 50 percent.
As for the Wall Street financial chaos, the President said the country's conservative financial regulatory system would help minimize damages to the economy.
``Global financial market turbulence has led to the disclosure of its uncertainties, allowing us to make predictions about the future,'' Lee said. ``A conservative financial market supervision system is firmly put in place here and will help the nation minimize damage.''
After the global money market was thrown into chaos in the wake of the collapse of top U.S. investment banks earlier this week, Lee instructed his government to deal with the crisis in a calm and transparent manner.
Lee said Korea can avert the U.S.-style financial crisis as banks are prohibited from lending more than 40 percent of the market value of properties to any household.
``The U.S. government's role in the private sector is limited. In Japan, financial loans are virtually linked to property market prices,'' Lee said. ``Korean banks offer loans within the 40-percent rule. Therefore, financial market problems won't occur even if housing prices fall.''