President Lee visits Chunchugwan for lunch and informal session with reporters

Real estate: 'We must prepare to minimize any shock when it comes'

Lee rebuffs critics: 'Would martial law have happened if Cabinet meetings were open?'

Police chief vacancy tied to post-insurrection personnel constraints, president says

President Lee Jae Myung holds an informal session with reporters in the lobby of Chunchugwan, the press center at Cheong Wa Dae, on Monday. [Yonhap]
President Lee Jae Myung holds an informal session with reporters in the lobby of Chunchugwan, the press center at Cheong Wa Dae, on Monday. [Yonhap]

President Lee Jae Myung said Monday that the real estate market could be heading toward a painful correction, and that the government must be ready to cushion the blow whenever it arrives.

"I'm not sure when the inflection point will come, but there could be a shock, and we need to prepare to minimize it," Lee said during an informal session with reporters at Cheong Wa Dae. "Overall, an accident will happen at some point. Who will be left holding the last bomb?" He warned that leaving the property market unchecked could amplify price swings and the damage that follows.

Lee made a surprise visit to Chunchugwan around noon, joining reporters for lunch before sitting down for roughly 90 minutes of wide-ranging discussion on national affairs. It was his second informal, off-the-record session with the Cheong Wa Dae press corps this year, following one in July.

Lee also addressed the government's push to tighten real estate lending rules. "Our government's position is that we need to reduce the amplitude of price swings," he said, adding that policy needed to become more precise.

He questioned the logic of blanket lending restrictions, asking why someone who genuinely needs to buy a home should be denied a loan. At the same time, he pushed back on the idea of removing all limits. "Is it desirable for people to take out loans beyond their means just to buy a house for profit?" he said.

On criticism of real estate tax policy, Lee rebuffed suggestions that the government had raised taxes to suppress prices or to collect more revenue. "That is simply not true. It is a matter of tax justice," he said. "When you earn income you pay taxes, yet strangely, investing in real estate comes with almost no tax burden."

Turning to the recent volatility in the stock market, Lee said he had been concerned about the pace of the rally. "I did worry about the sharp rise," he said, adding that he would soon receive a comprehensive briefing and take whatever steps were needed. "We must keep correcting the remaining issues — a culture of respecting shareholders, abuse of management control rights and so on."

He also repeated a point he has made before. "As I keep saying, it is a fact that South Korea's stock market is significantly undervalued," he said.

President Lee Jae Myung has lunch with reporters at the Chunchugwan dining room inside Cheong Wa Dae on Monday. [Yonhap]
President Lee Jae Myung has lunch with reporters at the Chunchugwan dining room inside Cheong Wa Dae on Monday. [Yonhap]

Lee also reaffirmed his commitment to expanding direct communication with the public through social media.

His remarks came in response to criticism that his habit of posting policy messages on social media is too casual, and that holding open Cabinet meetings could discourage ministers from speaking freely.

Lee acknowledged that open Cabinet meetings carry some risks but said the benefits outweigh them. "I think the advantages of holding open Cabinet meetings outweigh the disadvantages," he said. "Would martial law have happened if Cabinet meetings had been open? It could not have."

He also pushed back on the concern that ministers would feel inhibited with an audience watching. "These are ministers of a country — the idea that they cannot push back because someone is watching is not something I consider desirable," he said. "I am glad to see people who raise objections or offer different views."

Lee went further, crediting social media with making his political career possible. "Would President Lee Jae Myung exist without social media?" he said. "Could I have become Gyeonggi Province governor without communicating directly with the public, appealing directly to them, and hearing their views directly? I strongly encourage people in politics to increase direct contact with the public. I highly recommend social media."

He said he would not confine himself to existing formats, describing Monday's session itself as part of his broader effort to expand communication opportunities.

On the prolonged vacancy in the Korean National Police Agency chief post, Lee said the post-insurrection accountability process had left the pool of available candidates thin. "We went through the insurrection, there was accountability for it, and that left us with limited personnel to draw from," he said. "It will be resolved soon." His remarks suggested the delay stems from structural constraints beyond routine vetting.

The session had originally been closed to the public but was later opened. A Cheong Wa Dae official said the change reflected Lee's "usual desire to communicate with the public without filters."


sang@heraldcorp.com