The government is considering a targeted easing of loan regulations for young people, newlywed couples, and low-income individuals who are first-time homebuyers. Alongside expanding housing supply, additional financial measures are expected to be announced soon.
Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol stated on MBC Radio's 'Kim Jong-bae's Focus' on August 7 that he recognizes the need to ease loan regulations, saying, "I agree that protective measures for low-income and genuine homebuyers need to be relaxed," and added, "We are contemplating targeted support to alleviate difficulties." He specifically mentioned young people, newlywed couples, and low-income first-time homebuyers as potential beneficiaries.
This approach suggests a focus on selectively supporting genuine homebuyers rather than broadly relaxing real estate loan regulations.
Deputy Prime Minister Koo also hinted at additional measures related to housing supply. He stated, "We will expedite housing supply as much as possible, but since it takes time to supply apartments, we will also expand the supply of non-apartment housing."
Regarding the recently announced real estate tax reform plan, he emphasized the reduction of burdens for individuals owning one home. According to the government plan, homeowners with properties valued at 2 billion won or less will be exempt from comprehensive real estate tax, and many homeowners with properties valued at 3 billion won or less will see a significant reduction in their tax burden. In contrast, high-value homes priced between 4 billion and 5 billion won will face increased tax burdens.
On the plan to gradually strengthen the capital gains tax on multiple homeowners in designated areas, he clarified that it is a temporary easing rather than a deferral. He explained that this measure is intended to give multiple homeowners time to adjust as their property tax burdens increase.
As for regulations on single-stock leveraged exchange-traded funds (ETFs), the financial authorities have decided to monitor market conditions for the time being. Since July 31, the authorities have raised the minimum deposit requirement for investors in these products from 10 million won to 30 million won. Deputy Prime Minister Koo noted, "After the regulatory tightening, the concentration of investments has somewhat eased," and stated that further responses will be determined based on future circumstances.
* This article has been translated by AI.
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