5439

Curbing Property Prices Priority

Finance-Economy Minister Han Duck-soo said Wednesday that the government will place top priority on taking the heat out of the real estate market over boosting the economy.

During an economic forum at the National Assembly, Han reaffirmed his commitment to cracking down on real estate speculation at the risk of undermining short-term economic growth.

"The government will push to eliminate property speculation, even if it has an adverse effect on the economy," he said.

"The current anti-speculation policy can be a negative for the economic recovery in the short term, but is necessary for long-term growth potential," he said.

The top economic policymaker said that the pace of economic recovery is "not satisfactory."

Han now openly says that economic growth may slow to about 4 percent this year from a 4.6-percent expansion a year earlier, taking the brunt of higher oil prices.

The finance ministry has decided to cut its official growth target to about 4 percent from 5 percent, factoring in high oil prices and sluggish construction businesses.


# The Korea Times
- June 30, 2005
- By Kim Jae-kyoung