Rep. Yoon Chang-hyun of the People’s Power, on the morning of November 24 last year, at the’Political Affairs Committee’ held at the National Assembly in Yeouido, Seoul, is explaining a proposal for some amendments to the law on the protection of financial consumers. Reporter Oh Jong-taek
Regarding President Moon Jae-in’s recent statement that the government’s rapid rise in house prices was due to liquidity and low interest rates, Rep. Rep. Yoon was a professor at the Department of Business Administration at the University of Seoul, and served as the head of the Korea Institute of Finance.
On the 18th, Congressman Yoon criticized President Moon’s opinion on his Facebook page on the 18th by comparing the 4-year currency volume of the Park Geun-hye administration and the 4-year Moon Jae-in administration. In conclusion, it is an opinion that the rate of increase in the amount of money between the previous government and the current government is similar, but only the rate of increase in real estate prices has increased significantly.
He said, “The total currency (M2) was announced at about 3200 trillion won at the end of 2020. This is an increase of 9.8% compared to a year ago,” he said. , The cumulative increase rate is about 32.9%.” He explained, “The total currency volume at the end of 2012, just before the inauguration of the Park Geun-hye administration, was 835 trillion won, so the total currency growth rate for 4 years to 2407 trillion won at the end of 2016 was 31.1%.”
Rep. Yoon analyzed that “when the eight years from 2012 to 2020 were cut into two periods of four years each, the total currency growth rate (the Park Geun-hye administration and the Moon Jae-in administration) were 32.9% and 31.1%, respectively, almost the same level.”
At the same time, Congressman Yoon said, “Under the low interest rate trend that followed after the global financial crisis, the rate at which money was released was very similar,” he said. “But what was the house price?”
Regarding the increase in house prices, Assemblyman Yoon said, “Even if you use the Real Estate Agency Index, the rate of increase in house prices in Seoul was 6.5% for four years from the end of 2012 to the end of 2016, and 14.4% for four years from the end of 2016 to the end of 2020.” I wrote it down. Although the growth rate of the money supply of the two governments over the past four years was similar, the rate of increase in house prices in Seoul was almost twice that of the Moon Jae-in administration than the Park Geun-hye administration, Yoon concluded.
In particular, Assemblyman Yoon pointed out that “If you look at Gangnam apartments separately, the increase rate of the Park Geun-hye administration’s term of office is 31%, and within the term of the Moon Jae-in administration’s term, the increase rate is 74%.
Rep. Yoon added, “I feel once again how limited the simple explanation that the money has been released and the price of the house has increased.”
President Moon’s’liquidity and low interest rates’ came out at the presidential New Year’s press conference held on the 18th of last month. In one question and answer with reporters at the time, President Moon said, “It was not successful in real estate stabilization.” “This was an increase in the number of households that did not exist in previous years, and the shortage of supply caused by this increased real estate prices,” he explained.
Reporter Oh Wonseok [email protected]