Korean Real Estate震动：CEO Lee Kwang-soo Praises New Loan Regulations, Hints at Market Stabilization
On July 12, 2025, CEO Lee Kwang-soo of ‘Drops’ made headlines after commending the recent real estate loan regulatory measures implemented by the Lee Jae-myung administration. His statement, delivered via YouTube, described these measures as crucial for stabilizing the Korean real estate market, particularly in Seoul.
Regulations Aimed at Cooling Real Estate Market Mania
Announced by the Lee Jae-myung administration on June 27, the new policy introduced stricter regulations, including capping mortgage loan terms to 30 years in metropolitan and regulated areas. Additionally, the initiative sought to limit ‘gap investment’ by implementing a 6-month transfer restriction post-purchase for housing owners.
These measures have sparked differing views among real estate experts. Kim Hak-ryul, head of the Smart Tube Real Estate Research Institute, expressed concerns that the new regulations could escalate demand for low-cost housing and exacerbate rental market pressures. Yet, Lee Kwang-soo of ‘Drops,’ seen as a prominent advocate for real estate market declines, sees these rules as a game-changer.
:走其中!
“The Lee Jae-myung administration’s new policy will quickly stabilize the real estate market,” remarked Lee Kwang-soo in a statement. “It’s akin to turning off the faucet supplying loans to financially struggling individuals in a market with surging house prices.”
Innovative Approaches for Growth
Lee Kwang-soo further highlighted the importance of expanding the supply of quality public housing to stabilize housing prices. He proposed a model where the Korea Land and Housing Corporation (LH) should utilize its land resources to build low-profit, high-quality public housing, aligning with President Lee Jae-myung’s “LH’s rescue” strategy.
“The construction of quality public housing could be a game-changer. For instance, LH should sell its land to the private sector, not for profits, but to build durable affordable homes,” Lee added.
Consolidating Market Opinions
Despite expectations from some real estate experts about short-term challenges due to loan constraints, Lee Kwang-soo highlighted the long-term benefits. “While temporary hiccups in obtaining loans may occur, sustained stability in house prices will eventually stabilize charter prices as well,” he stated.
For those seeking to navigate the changing real estate landscape, Lee advised observing the broader market trends and taking a more nuanced approach to investment strategies. Keep an eye on Archyde.com for the latest market analysis and practical tips.
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