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Vice land minister apologizes over controversial housing market remarks

Daniel Kim Views  

This file photo, taken Aug. 21, shows First Land Vice Minister Lee Sang-kyeong. (Newsis)First Vice Land Minister Lee Sang-kyeong offered a public apology Thursday for his recent comments suggesting people should buy homes after the housing market stabilizes.

Lee had come under fire after appearing on a YouTube channel earlier this week, where he said, “When the market stabilizes and housing prices fall, that’s when people can buy homes.”

The remarks triggered sweeping criticism from online communities and both the ruling and opposition parties, accusing the vice minister of being tone-deaf to difficulties faced by ordinary citizens buying homes.

“I sincerely apologize for causing distress to the people,” Lee said. “I humbly acknowledge that my remarks fell far short of people’s expectations.”

Lee added, “I will reflect on myself and do my utmost as a policymaker to help stabilize the housing market as soon as possible.”

The real estate professor-turned-vice minister reportedly has close ties with President Lee Jae Myung and is known to have offered policy advice since the president’s days of serving as Seongnam Mayor and governor of Gyeonggi Province.

The controversy came as the government has been pushing to cool down the overheated property market.

Last Thursday, the government designated all of Seoul and 12 areas in Gyeonggi Province as regulated speculative zones and tightened housing-related loans in an effort to rein in soaring home prices.

The measures drew complaints from prospective home buyers who saw their loan access restricted.

The criticism against Lee intensified after it was revealed that he and his wife had reported assets worth more than 5.6 billion won ($3.9 million), including a high-value apartment in Seongnam, just south of Seoul, which many believe was purchased by using various investment methods and tools the latest anti-speculation measures seek to prohibit.

The housing market has emerged as a hot button topic in politics ahead of the local elections set to be held in June.

Apartment prices in Seoul have been on a steep increase in recent months, especially in neighborhoods around the Han River, fueling speculative demand and accelerating upward price trends, emerging as a key policy test for the new government.

The government has hinted at the possibility of raising the property holding tax to stabilize the housing market, but the ruling Democratic Party has distanced itself from such discussions, apparently due to concerns of possible fallout from supporters.

Discussions of raising the property holding tax have emerged despite the president having stressed during his campaign as candidate that his administration would refrain from relying on tax hikes as a primary tool for housing market stabilization. (Yonhap)

Daniel Kim
content@viewusglobal.com

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