In a major move aimed at tackling housing market concerns, the South Korean government has announced it will soon reveal a new set of measures to boost home supply. Finance Minister Koo Yun-cheol confirmed the plans on Sunday, stating that the government’s top priority is to stabilize the property market and ensure people have stable housing.
Speaking in an interview with KBS, Minister Koo emphasized the government’s commitment to residential stability, though he did not disclose the specific details of the upcoming housing supply measures. This announcement comes as the government looks to address economic challenges, acknowledging that the country’s potential growth rate is declining.
Koo also addressed worries about the nation’s rising debt, arguing that now is the time to invest in new growth engines for the South Korean economy. This approach is reflected in the recent budget proposal for next year, which stands at a massive 728 trillion won (approximately US$522 billion). The budget aims to significantly increase spending on research and development (R&D) and artificial intelligence (AI) to fuel future growth, marking an 8.1% increase from this year.
However, this expansionary fiscal policy is expected to impact national debt. According to the Ministry of Economy and Finance, South Korea’s national debt is projected to climb to over 51.6% of its GDP by 2026, up from 49.1% this year.
In a related development, new data has revealed a surprising trend in South Korea’s real estate market. Despite previous government pledges to curb speculative buying, the number of homes owned by foreigners saw a significant jump of over 20% during the previous administration.
The data, sourced from the Korea Real Estate Board, shows that foreign home ownership reached 99,830 properties by the end of 2024. This is a sharp increase from the 82,666 properties recorded just two years earlier.
Chinese nationals accounted for the largest share of this growth, with their holdings surging by 24.6% to 59,722 properties. Americans were the second-largest group, with 20,036 properties, followed by Canadians and Vietnamese. The data also highlighted a trend of high-value purchases, with foreigners buying 546 new homes each worth over 1.2 billion won (US$862,700) during this period.
