South Korea’s new finance minister Kim Dong-yeon who doubles as the deputy prime minister for economic affairs warned of strong crackdown on speculative activities upon signs of overheating in the real estate market and vowed “all possible policy” means to quench irregular activities.

“I’ve been closely watching the property market that has recently been overheating in some regions including Seoul,” said Kim while heading an economy-related cabinet meeting on Tuesday. “We must demonstrate zero tolerance on speculation,” he added.

Authorities will embark on “broadest and toughest” probe on areas with signs of overheating and heavily punish those found of unlawful practices, he said.

The government is readying comprehensive measures by August to address the housing market and snowballing household debt. The design on actions will be selective as not to disrupt real housing demand. He did not say whether the government will tighten mortgage-related loan regulations or revive speculative watch zones.

Meeting Bank of Korea Governor Lee Ju-yeol on the same day, Kim said the new administration and central bank will communicate closely to keep fiscal and monetary policies “in tune.”

Lee who stunned the market on the previous day by indicating a shift in the loose monetary policy said the central bank and government have no difference in their understanding of economic conditions.

By Cho Si-young

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]