President Lee: "Real Estate Is a Ticking Time Bomb… Deploy All Available Means and Capabilities"

▲ President Lee Jae-myung

President Lee Jae-myung emphasized, "We must concentrate all available means and capabilities to resolve the real estate issue, which is like a ticking time bomb threatening the lives of our citizens and the future of the nation."

During the 43rd Senior Secretaries and Assistants Meeting presided over at the Yeomingwan in the presidential office today (August 13), President Lee diagnosed that "real estate is a core issue for South Korea that profoundly impacts almost every aspect of our society."

He pointed out, "As social resources have been excessively concentrated in real estate for a long period, polarization and inequality have deepened. The real estate bubble has also reached a level that can no longer be left unchecked."

Mentioning Japan's "lost 20 years" and "lost 30 years"—terms signifying economic stagnation following the burst of its real estate bubble—he warned that failure to resolve the real estate problem could lead South Korea to face a similar phenomenon.

President Lee stated, "Given that virtually the entire population has direct or indirect stakes in real estate, efforts to delicately reflect market conditions and the public's expectations are necessary." He added, "We must meticulously refine overall supply, tax, and financial policies to normalize the market, stabilize housing, and steadfastly establish a systematic housing ladder."

In particular, he stressed, "An organic combination of bold and speedy supply, a fair and rational tax system, and detailed, robust financial policies is more essential than anything else."

Noting that supply policy is facing particular problems at present, he also pointed out the phenomenon of a "supply cliff."

President Lee emphasized, "(Since 2022) approvals have been significantly scaled back and housing starts have dropped sharply, inevitably resulting in a kind of supply cliff. Therefore, special efforts are required to bridge this gap."

Stating that there are many realistic constraints on supply policy and that it takes a long time for supply to materialize, he declared, "We must launch an all-out supply offensive with an extraordinary determination."

President Lee added, "We must shorten various approval procedures as much as possible, break free from existing regulations on land development sites, and secure land supply in a bold manner—even by revising laws and systems if necessary."

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