Finance Minister Choi Sang-mok (C) speaks during a meeting of economy-related ministers in Seoul on July 10, 2024. (Yonhap)
Finance Minister Choi Sang-mok said Wednesday that the government will devise measures to increase housing supply if needed, as South Korea has seen growing volatility in the real estate market.
"Volatility has risen in the real estate market as housing prices have gone up in Seoul and some adjacent regions, though overall industry indices remain stable," Choi said during a meeting of economy-related ministers in Seoul on the day.
"The government will enhance the monitoring of the market situation and will speed up the planned supply. If needed, we will actively seek ways of expanding the supply further," he added.
In response to rising household debts, the government will gradually tighten lending regulations by implementing the stressed debt service ratio (DSR) rules and other measures, according to the minister.
In June alone, household loans extended by the country's top five commercial lenders surged more than 5.3 trillion won, the sharpest jump in nearly three years.
The total household loans came to 708.5 trillion won as of end-June, up more than 2 percent from the end of 2023.
The tighter DSR rules were supposed to take effect from July, but the government postponed the implementation by two months despite criticism, citing the need to help small business owners and low-income earners.
"The government will redouble efforts to boost domestic demand and the job market. We will also swiftly implement measures for small merchants," Choi said.
Last week, President Yoon Suk Yeol announced a 25 trillion-won ($18 billion) package of support measures for self-employed and other micro business owners as they are struggling with debts taken during the COVID-19 pandemic era. (Yonhap)
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