GOVT'S RECENT REAL ESTATE MEASURES

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Land Minister Kim Hyun-mee predicts that the latest package of real estate measures will help rein in soaring house prices, starting in next month. She also vowed to introduce additional measures to curb surging property prices in areas exempted from the recent regulations.

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Land Minister Kim Hyun-mee says that the recent real estate measures, announced on June 17, will begin producing intended effects in mid-July.

[Soundbite] KIM HYUN-MEE(MINISTER OF LAND, INFRASTRUCTURE AND TRANSPORT(KBS NEWS LINE, JUN. 29)) : "The latest package contains various measures, which go into effect on different dates."

She also acknowledged that a balloon effect is being seen in Gimpo, Paju and other regions, which were not affected by the latest measures. The minister hinted at a possibility to lay out additional regulations and designate them as regulated zones. Kim also explained about the government's policy to strengthen loan constraints on housing leases known as jeonse. The minister made clear that such loans are for ordinary people without their own homes, not for home owners looking for investment opportunities. She also stressed the need to correct the practice of using aged, to-be-reconstructed apartments as an investment target.

[Soundbite] KIM HYUN-MEE(MINISTER OF LAND, INFRASTRUCTURE AND TRANSPORT) : "In consistency with the original purpose, rights to purchase reconstructed apartments must be given to those who will move in and live there."

Kim admitted that regulations are not enough to regulate people with large amounts of cash and prevent them from making speculative investments in properties. She expressed regret over the National Assembly's failure to approve the previous package of real estate measures announced last December, which included slapping higher taxes on owners of multiple homes.