Posted June. 16, 2005 03:04,
Measures to investigate all housing transactions in areas with surging housing prices for land speculation are being pursued. In addition, it is predicted that loan rates for those with two residences will increase while decreasing for those without housing.
On June 15, Minister of Construction and Transportation Choo Byung-jik said at the National Assemblys Construction and Transportation Committees conference, That is a good suggestion. Ill review investigating for speculation (in all housing transactions) in overheated speculative areas.
That was Minister Choos answer to Uri Party lawmaker Roh Young-mins question, What about setting a fixed standard at the overheated speculative areas and investigating all transactions as a short-term measure on the hiking of housing prices?
The Ministry of Construction and Transportation (MCT) assigns overheated speculative areas, when competition for housing deposit account is too high or speculative transactions are concerned. Currently, all of Seoul, Busan, Daegu, Gwangju, Daejeon, Ulsan, and parts of Gyeonggi, Incheon, Chungbuk, Chungnam, and Gyeongnam are tagged as overheated.
For now, if the MCTs Speculation Countermeasure Team finds a problem in a transaction, it will ask the National Tax Service to conduct further probes.
Furthermore, on the same day, Vice Minister and Minister of Finance and Economy Han Duck-soo said at the National Assemblys Finance and Economy Committee, It is rational to apply low rates when people without houses buy one, and apply high rates for those that have two houses. Ill make the Korea Housing Finance Corporation and other government related financial institutions follow such direction.