Mixed signals from presidential office spark confusion over housing loan regulations

Kang Yu-jung, spokesperson for the presidential office, gives a briefing at the presidential office in Yongsan, Seoul, on June 27. [JOINT PRESS CORPS]

 
The presidential office flip-flopped on Friday after first distancing itself from the government’s new housing loan rules, which were announced by the financial regulator. Just 90 minutes later, it issued a new statement saying it was closely communicating with the agencies involved.
 
The mixed signals came as the real estate market remained highly sensitive to signs of government intervention, prompting concerns that the administration’s inconsistency could further unsettle the market.
 

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“This is not a policy coming from the presidential office,” presidential spokesperson Kang Yu-jung told reporters at a briefing held at the presidential office in Yongsan, central Seoul. Her remarks referred to the housing loan regulations announced earlier in the day by the Financial Services Commission (FSC), the first real estate-related measures under President Lee Jae Myung’s administration.
 

A passerby walks past a real estate agency displaying rental listings in Seoul on June 23 as the city undergoes a sharp rise in housing prices. [YONHAP]

 
Despite the plan taking effect the following day, Kang said the presidential office had no formal position on the policy. 
 
“We have not issued any stance or policy on real estate at this point,” she said, adding, “We are closely monitoring various proposals and opinions to avoid confusion.”
 
When asked whether President Lee had been briefed on the measure during a Cabinet meeting, Kang responded, “There was no specific report on that matter during the morning meeting.” She added, “We did not receive a formal position from the FSC, nor did we provide any guidance on the direction of the policy.”
 
Her comments gave the impression that the financial regulator had moved forward without consulting the presidential office. The head of the FSC, Kim Byoung-hwan, is a holdover from the previous administration of President Yoon Suk Yeol.
“I believe the FSC proposed this measure in response to broader market trends. We will monitor its impact, and if necessary, the presidential office will respond accordingly,” Kang said.  
 
The spokesperson’s initial distancing from the policy drew swift political backlash.
Rep. Ahn Cheol-soo of the opposition People Power Party wrote on Facebook, “Not a presidential office policy? Are we still under the Yoon administration?” He added, “It’s absurd. Is there a Lee Jae Myung presidential office and a separate FSC under Yoon Suk Yeol? How long will they stay in observer mode, watching and commenting on governance from the sidelines?”
 
“It makes no sense for the presidential office to be unaware of a household debt policy that affects people’s livelihoods. This is a textbook example of an amateur government backing away once public reaction turns sour,” Rep. Song Eon-seog of the People Power Party told reporters.
 
The presidential office issued a revised statement, following the criticism.  
 
“Regarding the FSC’s household debt measures, we would like to clarify that the presidential office maintains close communication with government ministries,” the statement read. The message came roughly 90 minutes after Kang’s initial remarks.
 
“The real estate market is extremely sensitive, and there has been an internal principle to avoid direct commentary on housing policies. The idea was to refrain from making statements that could send the wrong signal to the market,” a source at the presidential office said in addressing the misstep.  
 
The source added that while the presidential office sought to maintain a cautious stance, the spokesperson’s remarks may have gone too far in distancing the administration from the policy.


Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY YOON SUNG-MIN [park.eunjee@joongang.co.kr]