Chapter 442

The wedding is scheduled to take place next spring.

Her location hasn’t been decided yet, and she’s thinking of going in Hong Kong or Singapore.

If I added a little exaggeration to my wedding news, the whole world shook. Excluding Korea and the United States, China and the United Kingdom are particularly interested.

The reason is that Ellie is a dual citizen of Hong Kong and the UK.

I wonder what China has to do with this, but the Chinese think that Hong Kong is, of course, a part of China.

Even the People’s Daily and the Global Times specified Ellie as “Chinese from Hong Kong.” Anyway, she’s advocating for a country, so it’s not wrong… … .

In the Kremlin, President Vysotsky directly called, and in Zhongnanhai, Commerce Director Li Suwei was contacted.

He spoke kindly, as if nothing had happened before.

[Congratulations on your marriage, President. I think this marriage will further enhance the friendly relationship between OTK Company and China.]

“… … .”

I don’t know if there was enough friendly relationship between us. Anyway, I can’t say anything to congratulate you.

We are not going to give up on the Chinese market in the future.

“Thank you.”

I feel like I spent 10 hours on the phone even though I was just congratulated and said hello. You don’t have to worry about gathering guests.

“Aren’t you supposed to invite Jin-yong Lim to the wedding too?”

“Do you know when it will come out?”

The first trial is currently in progress, but it is expected that it will take some time for the verdict to be delivered because the case is so complicated that only one document is needed.

A lawyer for Seoseong Group is arguing that the arrest is unfair, referring to the revelations of investigator Shin Jong-hoon.

Do I really have to go to a visit with a wedding invitation?

* * *

The British House of Representatives held an urgent debate on Brexit, and the House of Commons then voted on a resolution in favor of extending the Brexit deadline.

Despite the opposition of Prime Minister Kane, the ruling party voted in favor, and it was passed with 555 votes, more than 80 percent of the total.

That is, the brakes have been put on a no-deal Brexit.

Of course, the EU did not know if this would be accepted, but the atmosphere was that Britain took a breath.

I remember Grace Rothschild.



She was hoping for a no-deal Brexit. He must have been thinking of taking advantage of the turmoil in the financial market to make a profit.

So, what do you think about this situation?

“… … .”

Well, you’ll figure it out.

I decided to stop paying attention to other people’s affairs and focus on my country’s affairs.

In Saemangeum, the “largest since Dangun” new town development project is in progress. The domestic economy, which has been stagnant for a while, is reviving as a catalyst.

Evaluation agencies all raised Korea’s economic growth rate at once. But it was not without problems.

Usually, when domestic demand rises and the economic growth rate rises, real estate prices tend to fluctuate. However, Korea declined.

There are two main reasons. One is because it has risen too much, and the other is because it was expected that some of the population in the metropolitan area would escape when Saemangeum was developed.

When the supplementary budget was passed, house prices in Seoul also turned to a downward trend, but self-proclaimed real estate experts were confident that Seoul would drop a little and then rebound.

But what is this?

After that, a serious decline began. The final blow was Assemblyman Lee Jeong-hye. She started selling the Seocho-gu apartment she owned in her husband’s name.

As soon as her hearings were over, she sold a whopping six. When she asked reporters about this, Rep. Lee Jeong-hye said that she had to sell her husband’s business because she urgently needed money, but no one believed her.

She was not the only politician who sold or offered to sell her house.

Politicians have been the vanguard of real estate speculation. As soon as the news became known, real estate agents began to pour in a lot of properties.

Recently, house prices in the metropolitan area have been on an upward trend.

If the house price rises too high, you will have to pay a transfer tax of hundreds of millions of won, so it is better to own it. If you have to raise the property tax by 10 million won, the house price will rise by 100 million won anyway, so it’s worth the patience. No matter how expensive it is, as long as the price continues to rise, many people will buy it.

However, the opposite happens when the decline is in full swing. As the profit from the sale is given, the transfer tax decreases and the burden of the holding tax increases. When the price falls, the number of buyers is bound to decrease.

The reason why a transaction is made is because the seller thinks it is expensive and the buyer thinks it is cheap.

There is no fool to sell a house today, knowing that it will go up by 100 million tomorrow. On the other hand, there is no fool to buy a house today, knowing that 100 million will fall tomorrow.

When apartment prices went up by hundreds of millions of won, the media, who didn’t say much, poured out articles all at once as they fell by tens of millions of won.

[Seoul apartment transaction plummeting][House price decline due to national land shortage development. The damage is shared by the common people][Real estate stagnation hit the economy hard][Lease businesses who bought houses with the trust of the government, complaining about the development of Saemangeum][The fall in house prices threatens the stability of housing for the common people… … .][Mr. Kim, a 30-year-old office worker, gets troubled by falling house prices when he wakes up]

Taek-gyu was worried as well.

“Hmm, Mr. Kim, an office worker in our 30s, is dealing with all the disasters that happen in Korea today by himself. Who the hell is this person?”

“Call me and ask.”

I’m curious too.

But why do the media worry so much when real estate goes down?

The reason is, of course, that they live on advertisements from construction companies, not the love of viewers and subscribers. That’s why it makes sense when you look at the argument.

The government should take special measures, boldly loosen loan restrictions and stimulate the real estate market, raise the floor area ratio for reconstruction and redevelopment, adjust the development rate of Saemangeum, and so on.

“This article is interesting. Take a look.”

I was handed the tablet that Taek-gyu had offered.

[The only assets they have accumulated throughout their lives are an elderly couple living in one house, unable to sleep because of their old age]

(Strategy) All they have is an apartment in Apgujeong with a view of the Han River. However, when the comprehensive real estate tax bomb was not enough and even the house price fell by 300 million won, I couldn’t sleep at night.

This house is the only property of the old couple. Therefore, the decline in house prices is inevitably fatal in old age.

(syncopation)

Kim, in her 70s, lamented and said at the end of the interview.

‘What would a chaebol like Kang Jin-hoo know about commoners like us in Apgujeong who have only one house?’

Hundreds of comments followed the article.

-If it rises by 1 billion in 3 years and then falls by 300 million, isn’t it actually 700 million times? Am I the only one who doesn’t understand this?

– Hahaha Apgujeong apartment with a view of the Han River.



-It’s 3 billion, down from 3 billion. Should I worry about this?

-I’m curious as to how much money the Giregi who wrote this has.

– Don’t swear like that. He is a person with a warm heart who cares for people who have 3 billion even though he doesn’t have 300 million.

– Can’t we sell the house?

– You’re talking nonsense. Are you telling me to leave the house I’ve lived in all my life?

– If you don’t have money, you have to move. If I go to another area with that money, I’ll buy a penthouse.

– Haha, that’s easy to say. Then why are you arguing about the high price of a house in Seoul? If I lived in the mountains of Gangwon-do, I wouldn’t buy a house there for 100 million won.

-Who wants to move to another town? All you have to do is sell your house, get monthly rent or jeonse, and spend the rest of the money and live happily ever after. Or apply for a home pension. If you’re going to keep sitting on it, what old-fashioned asset is that? If you say that you won’t sell the house even if you die of starvation, it doesn’t matter if the house price drops by 200 million won or goes up by 2 billion won. Rather, if the property tax falls by 200 million won, we should thank Kang Jin-hoo.

– It is true that real estate taxes are too high right now. Even if you live on 30 pyeong in Gangnam, you have to pay 10 million won every year. Insurance premiums also go up here.

-However, can’t we have the same property tax for a 100-million-dollar house and a 1-billion-dollar house?

-After that, they will say that they live in a house worth 50 billion won and eat only ramen noodles because they don’t have money to pay taxes.

-Everyone! This is all because of Gangjinhu!

-Let’s protest in front of OTK Company!

“… … .”

It’s not just that the people of the country are raging over house prices.

I picked up the intercom with a sudden thought.

“Please bring me some data related to debt.”

* * *

I looked at the materials that Yuri had organized and brought.

No asset goes up forever, never goes down. Sometimes it rises, sometimes it falls, and sometimes it rises when it falls.

However, it is true that the recent surge has not been serious. Last year alone, house prices in the metropolitan area rose by nearly 10 percent.

10 percent might seem like a no-brainer, but it’s an average of all the houses in the area.

Apartments with actual transactions rose by tens of percent.

If the price of a house that used to be 1 billion won is 2 billion won, then it goes back to 1 billion won, it doesn’t end with returning to the way it was.

If the self that has skyrocketed in a short period of time plummets, the aftereffects are considerable. If this really happens, people will go bankrupt.

The problem is debt.(Read more @ wuxiax.com)

Currently, Korea’s household debt stands at 1,700 trillion won, which has long since surpassed GDP.

This means that even if you pour out all the goods produced in Korea in one year, you will not be able to repay the debt.

Taehyung narrowed his eyes.

“If that’s enough, even if I sell OTK Company, I can’t pay it back.”

It is impossible to be free from debt while conducting economic activities. As the economy grows, the money supply increases and debt increases.

But it was too fast.

Over the past few years, household debt has risen by more than 10 percent annually. Considering that the economic growth rate during this period was 3 to 4 percent, it more than doubled compared to the size of the economy.

“Everyone borrowed a lot. Why did you borrow so much money?”

“Because interest rates are low.”

Whether you borrow 100 million won when the interest rate is 4 percent or 200 million when the interest rate is 2 percent, the interest burden is the same. Because of this, you and I borrowed money.

This situation is similar to other countries, but Korea’s household debt problem is particularly serious.

Real estate prices around the world plummeted during the global financial crisis triggered by subprime mortgage loans. However, Korea’s rate of rise was smaller than that of advanced countries, and the extent of its decline was also smaller than that of advanced countries, thanks to prior regulations on lending such as LTV and DTI.

Developed countries, including the United States, have gone through the deleveraging process to adjust their debt, but Korea avoided it. Then, as liquidity overflowed due to low interest rates, debt continued to increase.

Household debt rose as house prices rose, and house prices rose because household debt rose.

Instead of catching it, the government, which had been continuously fanning it, came up with a belated and hasty plan to block the loan, but it was too late.

Debt needs more debt.

When an apartment is 500 million won, it is 50 million won if it rises 10%, but if it increases 10% when it is 1 billion won, it is 100 million Even if apartment prices rise only about the average of the previous year, the actual increase will double. And to buy it, you have to take out more loans.

The government announced that the rate of debt growth is slowing, but this is close to an optical illusion caused by an increase in absolute amounts.

Still, thanks to good loan regulation, house prices will not fall below the loan amount, but a blow is inevitable for those who bought a house late.

So, isn’t that why everyone is protesting in front of the company?

Hundreds of demonstrators gathered in front of the company, holding banners and demonstrating.

“okay. It can be.”

I decided to do that now. In a democratic country, it would be natural to express one’s opinion.

The problem is the government’s response.

Will this fall be an opportunity for a soft landing, or… … .

* * *

As house prices fell in earnest and landlords’ dissatisfaction increased, the politicians took action.

The government has begun to appease landlords by increasing loans to homeless people and end users, easing regulations on reconstruction and redevelopment, and reconsidering the reality of publicly announced prices.

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