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Korean government lays out new measures to stimulate ailing housing market

Updated: 2013-12-03 PM 2:32:59 (KST)
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The Korean government has laid out a set of measures that aims to improve on the housing policies it introduced earlier this year and revitalize the country's ailing housing market.
The new measures that were announced during an economy-related ministers' meeting on Tuesday include a simplification of government mortgage loans and an increase in government rental housing for people in the low-income bracket.
The government said by unifying the types of government-backed mortgage loans, more home buyers can get loans at lower interest rates.
It added that it will allocate 11-trillion won, or roughly 10-billion U.S. dollars, for government mortgage loans for next year, the same as this year's record amount.
While the overall number of public rental housing units will be cut by 30 percent to 140-thousand, there will be more government rental houses available for low-income households.
This set of government measures is being introduced in part to counter soaring jeonse prices that have risen since 2008.
The goal is to ease the imbalance between supply and demand in jeonse -- a unique Korean rental system that requires a large, lump-sum rental deposit.
The task of boosting the nation's faltering housing market has been a major issue for economic policymakers, as 70 percent of Korean households' assets are in real estate.
And because of that, officials say the ailing housing market could have a negative impact on the nation's consumption that takes up more than half of the nation's gross domestic product.
Hwang Ji-hye, Arirang News.


Reporter : emilyfwang@arirang.co.kr

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