(KPL/Yonhap) The government on Wednesday designated all 21 remaining districts in Seoul as speculative zones and announced tougher lending rules, in a move to rein in rapidly rising housing prices in the capital region.

The decision came during a ministerial meeting held at the government complex in Seoul, attended by Finance Minister Koo Yun-cheol and Land Minister Kim Yun-duk, as well as key financial officials.

The new speculative zone designations add to the existing four districts of Gangnam, Seocho, Songpa and Yongsan, effectively placing all 25 districts in Seoul under the speculative zone status.

Twelve cities in Gyeonggi Province, including Gwacheon, Yongin, Uiwang and Hanam, were also newly designated as regulatory zones.

The new designations will take effect Thursday.

Apartment prices in Seoul have been on a steep increase in recent months, especially in neighborhoods around Seoul's Han River, fueling speculative demand and accelerating upward price trends, emerging as a key policy test for the new government under President Lee Jae Myung.

Financial regulations on mortgage loans will be tightened.

The government will apply a mortgage loan ceiling of 600 million won (US$420,688) for homes priced 1.5 billion won or less, 400 million won for homes valued at between 1.5 billion won and 2.5 billion won, and 200 million won for homes worth more than 2.5 billion won.

In addition, the government said it plans to rationalize real estate-related tax rules to steer capital toward productive sectors.

Specific revisions will be determined after reviewing their impact on the market and tax equity, it said.

Lee had stressed during his campaign as candidate that his administration would refrain from relying on tax hikes as a primary tool for housing market stabilization.

KPL