What Measures Will South Korea Announce to Supply New Homes?
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Synopsis
The South Korean government is set to reveal significant measures aimed at increasing the supply of homes in an effort to stabilize the property market. With national debt on the rise, the Finance Minister emphasizes the importance of investing in economic growth engines.
Key Takeaways
- Government measures aim to stabilize the housing market.
- Planned budget increase focuses on research and development.
- National debt projected to rise significantly by 2026.
- Foreign home ownership has surged under the previous administration.
- Chinese nationals represent the largest group of foreign home buyers.
Seoul, September 7 (NationPress) - Finance Minister Koo Yun-cheol announced on Sunday that the government plans to unveil measures aimed at boosting the availability of homes later in the day, with the goal of stabilizing the property market.
"The primary focus of the government is to stabilize the housing market and guarantee the residential stability of the populace," Koo mentioned in an interview with KBS, refraining from divulging specifics about the forthcoming measures, according to reports from Yonhap news agency.
Koo acknowledged the growing apprehensions regarding rising national debt, yet emphasized that it is essential to invest in fostering new economic growth engines, as the nation's potential growth rate continues to decline.
Last month, the government suggested a budget of 728 trillion won (approximately US$522 billion) for the next fiscal year, aiming to significantly enhance spending on research and development as well as artificial intelligence to stimulate future economic growth.
This proposal represents an 8.1 percent increase compared to the current year's budget.
According to the Ministry of Economy and Finance, South Korea's national debt is forecasted to exceed 51.6 percent of its gross domestic product by 2026, rising from 49.1 percent this year.
In addition, data indicated that the number of homes owned by foreigners in South Korea surged by more than 20 percent under the prior administration, despite its commitment to limit speculative acquisitions by foreign nationals.
Data from the state-run Korea Real Estate Board, submitted to Representative Park Yong-gap of the ruling Democratic Party, revealed that foreign home ownership reached 99,830 by the end of 2024, an increase from 82,666 two years prior.
The 2024 figures indicate a 20.7 percent growth over the two-year span under the previous Yoon Suk Yeol administration.
By nationality, Chinese nationals held the largest share and experienced the most significant increase, rising 24.6 percent to 59,722, followed by Americans, whose ownership rose by 2,145 to 20,036.
Vietnamese ownership increased by 647 to 1,592, while Canadian home registrations climbed by 482 to 5,341.
During this period, 546 new home purchases valued over 1.2 billion won (about US$862,700) were recorded by foreigners.
Point of View
It is vital that we recognize the government's proactive stance in addressing housing challenges. While concerns over rising national debt loom, investing in housing stability is crucial for the well-being of the populace. The balance between economic growth and fiscal responsibility must be maintained.
NationPress
07/09/2025
Frequently Asked Questions
What is the purpose of the upcoming measures announced by South Korea?
The government aims to stabilize the housing market and ensure residential stability for its citizens.
How much is the proposed budget for the next year?
The proposed budget for the next year is 728 trillion won, approximately 522 billion USD.
What is the expected trend for South Korea's national debt?
South Korea's national debt is projected to rise to over 51.6% of its GDP by 2026.
How much did the number of homes owned by foreigners increase?
The number of homes owned by foreigners increased by more than 20% under the previous administration.
Which nationality has the highest home ownership in South Korea?
Chinese nationals have the largest share of home ownership, with a significant increase in numbers.
