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South Korea fin min says will tackle speculation in "overheating" property markets
[SEOUL] South Korea's finance minister said the government will focus on curbing speculative investments in new measures it will prepare to stem soaring property prices. "A pre-emptive, surgical approach will be made to address regions showing signs of overheating," Kim Dong Yeon told other ministers at a policy meeting in Seoul.
Commentators have speculated the government will tighten rules on how much home buyers can borrow in proportion to a home's value when current regulations expire next month.
Currently home buyers can borrow up to 70 per cent of the property value, with repayments allowed to take up to 60 per cent of their annual income.
President Moon Jae In promoted Mr Kim from head of the budget office to finance minister last week.
Mr Kim said the government will also need to prepare measures to stabilise financial markets in case the US Federal Reserve raises interest rates this week and increases volatility.