President Lee Vows to Keep Promise to Escape 'Real Estate Speculation Republic'

▲ President Lee Jae-myung delivers opening remarks at a reporting session on civil service innovation cases held in Sejong City on October 2.

President Lee Jae-myung reaffirmed the government's stance, stating, "I will definitely keep the promise to escape the 'real estate speculation republic'."

In a post on X (formerly Twitter), President Lee wrote, "Even if it is difficult right now, we cannot allow South Korea to face 30 lost years at the end of passing around a real estate time bomb."

Pointing to the causes of real estate issues, President Lee noted, "The sharp drop in building permits centered on Seoul from 2022 to 2025, which led to a substantial reduction in housing supply with a time lag, is the biggest cause of short-term housing price instability," adding, "The mid- to long-term causes include concentration in the Seoul metropolitan area, excessive lending that encourages housing speculation, and an unfair tax system."

He continued, promising, "We will also supply large quantities of long-term public rental housing for young people and the middle class early by utilizing excess tax revenue."

He also forecasted, "Building permits and construction starts have increased significantly recently," adding, "As the development of new residential land and the conversion of existing sites and buildings for residential use are gaining speed, housing supply will also increase significantly soon."

Furthermore, he emphasized, "We will ease the concentration in the capital region through balanced development policies, including the relocation of administrative agencies and public enterprises to provincial areas and regionally centered 'Three Mega and Seven Seed Projects,' while adjustments to household debt—which is among the highest in the world—and tax reform adhering to tax justice will also be carried out."

President Lee added, "In particular, our country has a globally high proportion of real estate assets and heavy household debt, and I ask that you also closely monitor the flow of funds shifting toward productive finance and the trends in international benchmark interest rates."

(Photo: Blue House Press Corps, Yonhap News)

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