Finance minister vows additional steps if housing prices do not stabilize

SEJONG, Nov. 6 (Yonhap) -- South Korea's chief economic policymaker said Tuesday that the government will take stronger measures if home prices do not stabilize.

In September, the government said it will levy tougher taxes than originally planned as it strives to rein in soaring housing prices.

Over the past year, the Moon Jae-in government has unveiled a series of measures to curb housing prices. Those measures have had little impact on the market, as apartment prices in the affluent Gangnam district and some other neighborhoods have jumped on hopes of reconstruction projects and ample liquidity in the market

"Should real estate prices show signs of instability again, the government will take swift and drastic measures to cool down (housing prices)," Finance Minister Kim Dong-yeon said in a parliamentary committee meeting.

The top official said housing prices have stabilized, but the government will remain vigilant.

The Bank of Korea's eight rounds of rate cuts since 2012 have helped send home prices and household debt to record levels as more people take out loans to buy homes.

In September this year, Seoul said it would further raise the tax burden on owners of high-priced houses and multiple homes, and seek to raise the taxable rate on property, while curbing mortgage loans.

sam@yna.co.kr
(END)