Housing supply

S. Korea to unveil inflation-fighting measures, housing supply plan this week

Apartments in Yeongdeungpo-gu in western Seoul are pictured. (Yonhap)

South Korea will this week unveil additional measures to rein in inflation and a package of housing supply plans to help stabilize people’s livelihoods, the finance minister said Monday.

The government plans to roll out soon-to-be-announced inflation-fighting measures ahead of the autumn Chuseok holiday next month, as consumer prices hit a nearly 24-year high in July due to high energy and food prices, according to Finance Minister Choo Kyung-ho.

Consumer prices in South Korea rose 6.3% year on year in July, the fastest rise in nearly 24 years and an acceleration from a peak of 6% in June.

High inflation and rising interest rates have weighed on people’s spending, possibly dampening economic growth.

The Yoon Suk-yeol administration will also unveil its first package on Tuesday aimed at stabilizing the housing market which includes the provision of more than 2.5 million houses.

President Yoon earlier promised an overhaul of real estate policy, saying the previous government’s pursuit of stricter regulations and higher taxes to curb speculation had eventually caused a spike in house prices.

Home prices have been trending lower in recent months as real estate transactions have remained sluggish amid rising interest rates and concerns about an economic slowdown. (Yonhap)