President says speed is key for new construction and redevelopment; tax measures to be finalized with July budget; real estate a constant factor in elections

A live broadcast of President Lee Jae Myung's first-anniversary press conference plays on a television screen at Seoul Station on Monday. [Yonhap]
A live broadcast of President Lee Jae Myung's first-anniversary press conference plays on a television screen at Seoul Station on Monday. [Yonhap]

President Lee Jae Myung said Monday that the government has done a reasonable job holding back upward pressure on real estate prices and pledged that a package of supply-boosting measures would be announced soon.

Speaking at a press conference marking his first year in office, held at Cheong Wa Dae's Yeongbingwan banquet hall Monday morning, Lee said housing supply had dropped sharply over the three years from 2022 to 2024. "Whether it's new construction, land development, reconstruction or redevelopment, what matters is moving fast," he said. "Breaking free from a republic of real estate speculation is the way this country survives."

Lee said the government intends to announce a comprehensive overhaul of real estate policy covering taxation, finance, regulation and supply. "However, the tax side will probably need to be handled together when we draw up next year's budget plan in July," he added.

On the sharp rise in jeonse — a lump-sum deposit rental system — prices in the Greater Seoul area, Lee pushed back against the narrative that a drop in jeonse supply had caused a property price surge. "That argument was constructed by people who want it to be true," he said. "This is part of a normalization process. Statistically, there has been no massive spike."

Lee also said South Korea's property holding taxes are generally low, leaving buyers with little financial burden no matter how many homes they acquire. "Fundamentally, we need to bring down the expected rate of return," he said.

The president said curbing speculative demand must go hand in hand with expanding supply. He noted that expanding new towns by encroaching on greenbelt land is the easiest option, "but the problem is that it kills the regions." He added that if homes held for investment or speculation were put on the market, there would be enormous untapped supply.

Lee said the public mindset that buying land for speculation is a reliable way to make money must change. "This has to be resolved by whatever means necessary, and if there is the will, it can be resolved," he said.

Lee said real estate speculation is distorting the economic structure. "People borrow from banks, buy several homes, and end up earning more than they would from working," he said. "The will to work is undermined, and all manner of illegal and irregular practices run rampant in the process." He added that vast amounts of capital are locked up in real estate and not flowing into productive activity, saying the undervaluation of share prices is also tied to this dynamic.

Asked whether real estate sentiment had played a role in the June 3 local elections — including the Seoul mayoral race — Lee said that after any election loss there are ten thousand reasons why you lost, and after even a one-vote victory, ten thousand reasons why you won. "I think real estate's influence on the election was a constant," he said.

He maintained, however, that the government had done a reasonable job containing upward price pressure. "Recent polling shows 50 percent of the public rates our real estate policy positively," he said.

At Monday's press conference, Lee took questions directly from the press corps across three areas: the economy and livelihoods, politics, diplomacy and security, and society and culture. At his New Year's press conference in January, he had far exceeded the expected running time, fielding questions for roughly two hours and 53 minutes in total.

Lee is scheduled to hold a meeting with the heads of the four branches of government at Cheong Wa Dae on Monday afternoon. Of the traditional five constitutional figures, the chairman of the National Election Commission has been excluded; those attending are National Assembly Speaker Jo Jeong-sik, Prime Minister Kim Min-seok, Constitutional Court Chief Justice Kim Sang-hwan and Supreme Court Chief Justice Jo Hee-de.

Some in political circles see the gathering as a get-acquainted event following Speaker Jo's election, though others interpret it as an occasion to discuss the need for oversight and monitoring mechanisms over the election commission.


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