Seoul, South Korea – In a concerted effort to stabilize the housing market, the South Korean government and the Seoul Metropolitan Government have announced they will closely monitor market conditions and are prepared to reinstate land transaction permit zones if prices exhibit abnormal and excessive increases.

The decision was reached during the 13th Real Estate Market and Supply Inspection Task Force (TF) meeting, chaired by Vice Minister of Economy and Finance Kim Bum-seok. The meeting, which included key officials from the Ministry of Land, Infrastructure and Transport (MOLIT), Seoul Metropolitan Government, and the Financial Services Commission (FSC), emphasized the importance of maintaining market trust in housing supply plans to ensure price stability.

Key Measures and Strategies:

Supply Assurance:The government pledged to ensure the timely supply of housing units in high-demand areas, including the Gangnam districts, by the end of the year.
Plans are underway to announce new housing site candidates in the Greater Seoul Area, utilizing greenbelt areas to create 30,000 new housing units.
Financial Oversight:Household debt will be continuously managed through regular check-up meetings.
The housing market will be closely monitored to prevent any market-disrupting activities.
Joint Inspection and Enforcement:A joint field inspection team, comprising officials from MOLIT and the Seoul Metropolitan Government, will be activated to investigate suspicious transactions.
Any illegal activities uncovered through investigations will be reported to the National Tax Service, FSC, and local governments, and may lead to police investigations.
Land Transaction Permit Zones:The Seoul Metropolitan Government has stated that it will promptly reinstate land transaction permit zones if housing prices rise excessively.
Minister of Land, Infrastructure and Transport Park Sang-woo also indicated the possibility of re-designating these zones if necessary.
The Minister park sang woo said that "The lifting of the land transaction permit zone has in some ways acted as the detonator of the rise in house prices centered on the Gangnam area," and "we will closely review how the housing market will change in the future with Seoul city, and if the necessary situation comes, we will take appropriate action without missing the timing."

Context and Background:

Recently, the Seoul Metropolitan Government lifted land transaction permit zones in certain areas, including parts of the Gangnam districts.
This action was followed by concern of house price rising.
The land transaction permit zone is a policy that requires permission from the local government for land transactions in designated areas, and it includes obligation of actual residence.

Government's Commitment:

The government and the Seoul Metropolitan Government have demonstrated their commitment to stabilizing the housing market and protecting consumers. They have made it clear that they are prepared to take swift and decisive action to prevent any further market instability.

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