Roh Orders Stabilization of Real Estate Prices

President Roh Moo-hyun has ordered his cabinet to take active measures to stabilize real estate prices by increasing real estate tax and introducing a plan to actualize the tax base.

“The government should come up with positive measures to stabilize real estate prices, since price hikes have a negative impact on the nation`s economy,” Mr. Roh said.

With respect to centralization in the Seoul metropolitan area, President Roh said: “Although there are various ways to control centralization, practical analysis should be done whether such regulations have actual effects or only end up tempering national competitiveness by limiting corporate activities.” He added that based on the results decentralization as well as balanced development of the nation should be reorganized.

The government will hold a ministerial meeting related to socioeconomic issues on May 9 to discuss plans on possible measures related to real estate prices.

Young-Hae Choi yhchoi65@donga.com