[WORD_ON_THE_WEB] 'I don’t want to pay off other people’s debts'

The government is planning to implement a loan transfer policy which turns a mortgage loan with variable interest into a loan with fixed long-term interest.

The government has budgeted 45 trillion won (approximately $34.2 billion) for the scheme. Loan transfers will be available on homes valued below 900 million won ($690,000) starting with the lowest-valued properties. A preferentially interest rate will also be offered to low income households with a home valued under 400 million won.

The loan transfer policy will be introduced to reduce the financial burden caused by mortgage loan interest as the base interest rate increases.

However, critics argue that it is hard for people who own houses in the metropolitan area to gain the benefit. According to a report on the housing market released by KB Kookmin Bank last June, the median price of houses located in the metropolitan area came out to be 650.02 million won.

Some are criticizing the policy, pointing out that it is a relief measure for people who borrowed money to invest in real estate, stocks or virtual assets. That is, it is unfair to provide governmental support to ease the burden as those who invested their money unwisely.

#where_are_houses_that_cheap?
“Now everyone will look for a house under 400 million won. Where on earth can we find one?”
“Priced under 400 million? If you are to provide the people with support, be more realistic.”

#take_responsibility
“No one takes out a loan with variable interest except those who are living in a house which is too lavish for them to afford.”
“The government should make them sell their houses rather than providing a relief measure.”

#cancelling_debt_with_taxes?
“The government will cancel debt with taxes that I paid? Can we call this fair and sensible?”
“Be more responsible. I don’t want to pay off other people’s debts."

BY HWANG JAE-YOUNG, BY HAN HYE-RIM [han.hyerim1@joongang.co.kr]