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South Korea Readies Third Housing Package to Check Seoul Price Rebound

Officials signal a balanced mix pairing faster supply with stricter lending plus potential tax changes as details are finalized.

Overview

  • Finance Minister Koo Yun-cheol said the package will be unveiled this week to stabilize the market as Seoul prices climb again.
  • Koo emphasized expanding housing supply over using taxes to suppress demand, while noting that tax discussions continue with no final decisions.
  • Financial authorities indicate likely demand-side tightening, including lower loan-to-value limits for high-priced homes and broader debt-service rules that count jeonse loans.
  • Officials are weighing wider regulation maps and land-transaction restrictions, with potential additions such as Mapo, Seongdong and Bundang districts.
  • Land Minister Kim Yun-duk said June lending curbs and September supply steps had only partial effects, as data show Seoul apartment prices rose 0.27 percent in September.