Lee stresses balanced regional growth as key to stabilizing housing market

By Kim Eun-jung

SEOUL, Oct. 24 (Yonhap) -- President Lee Jae Myung pledged Friday to expand support for balanced regional growth to address problems stemming from overconcentration in the Seoul metropolitan area and to help stabilize the housing market.

Lee made the remarks during a town hall meeting in the southeastern city of Daegu, days after the government designated all districts of Seoul and parts of Gyeonggi Province as speculative zones and tightened mortgage loans in an effort to curb soaring home prices.

"Housing prices in the Seoul metropolitan area are among the highest in the world relative to household income. If this problem is not fixed, it could eventually lead to a 'lost 30 years' like Japan," he said. "Balanced regional development is therefore a crucial task to tackle this issue, though it is by no means an easy one."

Noting that channeling resources into specific regions and companies was once effective during the nation's rapid industrialization, Lee said the government will now pursue bold policy measures to promote balanced growth across the country.

"Balanced regional development is not an act of generosity toward local areas but an essential strategy for the survival of the Republic of Korea," he said, referring to South Korea's official name.

To that end, Lee said the government will first pilot various support programs outside of the Seoul metropolitan area and craft policies that offer greater incentives for infrastructure development and corporate investment in regional areas.

ejkim@yna.co.kr
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