Seoul's finance minister nominee says property market showing signs of overheating

[SEOUL] South Korea's nominee for finance minister said on Wednesday he is closely watching Seoul's property market as it is showing "signs of overheating". Responding to a question from a lawmaker on housing market regulations, Kim Dong-Yeon said the government will not tolerate speculative property investment.

"While it may not be appropriate to comment on specific regulation (changes needed) as I'm a nominee, I'm closely monitoring real estate transactions showing signs of overheating, surrounding Seoul," Mr Kim said in a National Assembly hearing.

The incoming finance minister declined to comment on whether the government needs to tighten mortgage rules or not.

Many speculate the government will tighten rules on how much home buyers can borrow in proportion to the home value when the current regulation expires next month.

Currently, home buyers can borrow up to 70 per cent of the property value, and the debt-to-income ratio stands at 60 per cent.

REUTERS