President Lee: "Real Estate Bubble Cannot Be Ignored... Bold Supply Measures Even If Laws Must Be Amended"

President Lee Chairs Senior Secretary Meeting on the 13th
Lee: "Supply Cliff Since 2022"
Urges Advisers to Mobilize All-Out Effort for Comprehensive Supply Measures

On August 13, President Lee Jae-myung stated, "The real estate bubble has reached a level that can no longer be neglected," adding, "If this situation continues, we could face a 'lost 20 years,' or even a 'lost 30 years.'" President Lee also called for policies to normalize the real estate market as well as bold measures to increase housing supply.

Chairing the Senior Secretary Meeting at the Yeo Min Gwan Hall in the Blue House that afternoon, President Lee emphasized, "Real estate is a core issue for South Korea, affecting nearly every sector of our society."

President Lee Jae-myung is speaking at the Senior Secretary Meeting held at the Blue House on August 13, 2026. Photo by Yonhap News

President Lee stressed, "We must concentrate all available means and capabilities to resolve the real estate issue, which is a ticking time bomb threatening both the lives of our people and the future of the country." He added, "Since virtually every citizen has a direct or indirect stake in real estate, we need to make meticulous efforts to accurately reflect market conditions and public expectations."

He continued, "We must carefully revise supply, taxation, and financial policies to normalize the market, and persistently advance the systematic establishment of residential stability and housing opportunities." He emphasized, "Most importantly, a combination of unprecedented and fast-paced supply, a fair and reasonable tax system, and detailed and robust financial policies is essential."

Addressing the issue of supply shortages, President Lee described it as a "particular problem." He explained, "Since 2022, we have faced a supply cliff," adding, "Extraordinary efforts are needed to fill this gap." He then instructed, "With firm resolve, we need an all-out push to increase supply on every front. All types of authorization and permitting processes should be shortened as much as possible, and sites for housing development should be secured boldly. If necessary, laws and systems should even be revised to ensure sufficient supply without being constrained by existing regulations."

President Lee also highlighted the so-called "marriage penalty," where getting married is a disadvantage when trying to buy a home. He said, "It is unreasonable that single men and women each had their own opportunities, but after marrying, those opportunities decrease," adding, "It would be ideal to identify and correct every mistake in each area so that no one feels the system is unfair." He declared, "The government will make every effort to ensure that anyone can pursue the dream of owning a home."

Meanwhile, President Lee said, "Even after policy announcements, we must further enhance the quality of our policies by faithfully reflecting public feedback," adding, "Good proposals or amendments should be considered rationally, openly discussed, and transparently adopted to create even better, more complete policies." This is understood as referring to the need to supplement the real estate system and Individual Savings Account (ISA) policies, for which public dissatisfaction has grown since the government's tax reform plan was announced.

However, regarding criticism that repeated tax revisions have made the policy a 'patchwork,' President Lee refuted, "Accepting reasonable suggestions should not be described as a lack of consistency or as indecisive policymaking." He added, "Some say we have created a patchwork, but don't be constrained by such comments," stressing, "We should boldly gather input from the public, experts, the opposition, and the political community."

This content was produced with the assistance of AI translation services.