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On Tuesday, we brought to you live coverage of President Park Geun-hye's speech to the
nation marking the one-year anniversary of her inauguration,... in which she laid out
her three-year economic innovation plan. As the first part of the plan, the Finance
Ministry this Wednesday announced measures aimed at reining in household debt and boosting
the nation's sagging housing market. Song Ji-sun has the details. Balancing record-breaking
exports with greater domestic activities is a key economic objective of President Park
Geun-hye's three-year plan, and as the first concrete step toward boosting domestic demand,
the government has put together a detailed plan to
reinvigorate the housing market. Finance Minister Hyun Oh-seok told a meeting
of economy-related ministers on Wednesday... that there is an urgent need to stabilize
skyrocketing housing rent fees to allow consumers to spend more on other things.
To control prices in Korea's traditional rental system called jeonse, the government will
make sure some 500-thousand new homes will be built over the next three years.
The government will also offer low-interest loans totaling 11 trillion won, or 10 billion
U.S. dollars to new home buyers to ease their burden.
It'll also draw up tailored plans for people seeking to rent their home on a monthly basis.
Wednesday's move came one day after President Park unveiled a three-year plan aimed at overhauling
the Korean economy into a vibrant trendsetter from a fast follower.
"To boost the domestic economy, we must lower the burden on the middle class - on ever-rising
Jeonse prices, and household debts that have always held back solid growth."
And to rein in the household debt issue, Seoul aims to lower households' disposable income-to-debt
ratio by 5-percentage points by 2017. The finance ministry also said it would raise
household income -- by creating new jobs, particularly for women and young people.
Song Ji-sun, Arirang News.