![President Lee Jae Myung speaks at the National Forum on Real Estate Policy at KBS in Yeouido, Seoul, on Thursday. [Yonhap]](https://wimg.heraldcorp.com/news/cms/2026/07/23/news-p.v1.20260723.599eb38d9d474270935ed720e4313f48_P1.jpg)
President Lee Jae Myung called real estate policy "one of South Korea's greatest challenges" on Thursday, saying the country must find solutions through social consensus.
Speaking at the opening of the National Forum on Real Estate Policy at the KBS annex in Yeouido, Seoul, Lee said real estate accounts for the largest share of household assets in the country and that there is broad public agreement that action is needed.
Lee pointed to Japan as a cautionary tale, noting that Japanese property prices had climbed until they burst "like a balloon," giving rise to talk of "lost 20 years" and "lost 30 years." He said quite a few people worry that South Korea may be racing toward the same peak.
During the forum, Lee addressed the widespread practice of buying a single high-end apartment to sidestep multi-home regulations — a phenomenon commonly known as the "one premium home" strategy. He said the trend "has caused serious problems in South Korea" and that it had "created an opportunity for efficient speculation."
He said the original intent of policymakers had been to respect and protect single-home ownership, but treating all single homes equally regardless of price had produced a situation where people could buy one property and reap investment gains. "Because there was no distinction between a home for living and one for investment or speculation, something enormous grew out of that small loophole," he said.
Lee added that South Korea's real estate market is under such intense pressure that "even a tiny hole causes it to blow wide open." He said there is a view that taxing ultra-high-priced homes could ease that pressure, but that the appropriate level of the tax burden would need to be discussed.
However, he acknowledged widespread concern over people who temporarily vacate their homes due to work relocations or their children's education. He proposed replacing the term "actual residence" with "residential use," suggesting that those who are temporarily away for unavoidable reasons should be treated the same as actual residents.
On property holding taxes, Lee said there is "broad agreement" that they need to be strengthened, and that the key questions are the scope, the degree of increase and how to differentiate between cases.
He noted that even bringing property taxes up to the level typical of advanced economies — which he said would not even count as a significant increase — would require tripling the current rate. "If you triple it, wouldn't something close to a riot break out?" he said, adding that the adjustment should have been made in the past but that prices have since risen far too much.
Lee said compromise would ultimately be necessary, but that preparations should begin now. "It is a problem that will explode someday," he said, reflecting on what an appropriate level of property tax might look like.
He defined the tax system as "a fiscal burden shared fairly among all members of society to secure national finances," and raised the question of whether using taxation to influence supply and demand is justified, and to what degree. He called using taxes to suppress demand or boost supply in a specific sector "somewhat exceptional."
Lee also told Prime Minister Han Seong-sook that if the day's discussion on taxation remained unresolved, he would like to revisit the topic at least once more.
On real estate finance policy, Lee called finance "something public — a portion of the power delegated by the people." He said the question of who gets to use financial resources and who is given the opportunity to access them ultimately comes down to policy.
He questioned whether it is appropriate to extend loans to people buying homes purely to make money, saying that when finance is used for investment and speculation rather than residential purposes and home prices rise excessively, "the people who actually need those homes end up being harmed."
"Is it desirable for one member of society to profit while causing harm to another?" he said, doubling down that this, too, is ultimately a policy question.
On real estate policy more broadly, Lee said he would not decide matters by majority vote, signaling his intention to gather a wide range of views.
The forum also featured a presentation by Lee Hyeong-il, first vice minister of the Ministry of Economy and Finance, who shared real estate-related opinions collected from the public in advance.
On the debate over property holding taxes, the vice minister said opinions had been submitted proposing that the threshold for ultra-high-priced single homes be set at either 3 billion won ($2.03 million) or 5 billion won. He said views were evenly divided between those calling for stronger holding taxes to curb the one-premium-home trend and those urging caution, arguing that taxing unrealized gains could be passed on to tenants.
On taxing single-home owners who do not live in their properties, he added that opinions were similarly split between those who want stricter residency requirements and higher taxes for non-residents, and those who oppose such taxation on the grounds that some absences are unavoidable.
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