President Lee: "We Will Eradicate Real Estate Speculation by Any Means"...Accelerating Tax Reform and Housing Supply

Rising Interest Rates, Mortgage Delinquencies, and Foreclosures Cited Directly
"Those Interested in Real Estate Speculation Should Be Cautious"
Determination for Early, Large-Scale Supply in Seoul and the Metropolitan Area
Plan to Grant Dis

On August 30, President Lee Jae-myung declared, "I will eradicate destructive real estate speculation by any means necessary," pledging to mobilize the nation's full capabilities for financial and tax reforms, as well as the early and large-scale supply of housing in Seoul and the capital area. He stated that the government will ease upward pressure on housing prices by expanding supply and curbing speculative demand. However, should the market reverse and experience a rapid decline, he said the public sector will prepare a "downside safety net" by purchasing homes in large quantities. Additionally, as he enters his second year in office, President Lee presented an administrative approach focused on "quiet and swift" achievements, emphasizing results rather than stoking unnecessary conflict around reforms.

President Lee Jae-myung is speaking at the 'Youth Budget Unboxing 2027' event held at the Blue House on the 28th. This event was organized to explain the youth budget and key projects ahead of the government budget announcement for next year. August 28, 2026. Photo by Yonhap News Agency

President Lee made these remarks in a lengthy post on X (formerly Twitter) the same day, stating, "We will rectify unfair and unreasonable tax systems that have been shown to fuel speculation, at least for the sake of tax justice." He continued, "For the future of the nation and hope for the next generation, we must eliminate the game of passing the real estate speculation bomb and the risk of a lost 30 years."

Amid recent debates within the Democratic Party over the direction of real estate tax reforms, demands have continued to recognize "inevitable non-residence reasons" for non-resident single homeowners. The party and government are also reviewing additional detailed standards, but with President Lee reiterating the need to "correct unfair and unreasonable tax systems," he made clear his intention to maintain the fundamental principles of tax reform to curb speculation, regardless of further detailed modifications.

Regarding supply policy, President Lee stated, "The government will mobilize all national capabilities not only for financial and tax reform but also for expanding housing supply and accelerating delivery," and asserted, "Especially, the early and large-scale supply of housing in Seoul and the metropolitan area is a two-pronged strategy and will be implemented without fail."

He also announced adjustments of authority to address permitting bottlenecks in Seoul. President Lee explained, "Since 2022, housing permitting and groundbreakings in the capital region, especially Seoul, have plummeted for more than three years," and said, "District mayors will be granted permitting authority for developments of 500 units or fewer, and all possible incentives will be provided for early permits and construction starts."

He instructed the Ministry of Land, Infrastructure and Transport to increase personnel responsible for supply and to identify as much additional available land as possible, even if the parcels are small. President Lee explained, "Adding even one more unit to housing supply is an effective housing policy, as well as a multi-billion won job and welfare policy," underscoring this point to government ministries. Quoting Land, Infrastructure and Transport Minister Kim Yoon-deok, he said, "We will move as quickly as if we're 'mad for supply,' doing everything possible to accelerate expansion," adding, "The Prime Minister is monitoring progress daily, and the Blue House is also conducting regular inspections."

President Lee also sent a warning to the real estate speculative market. He said, "Those interested in real estate speculation should pay particular attention to media reports predicting a 3.5% Bank of Korea rate in the first quarter next year," and noted, "The government neither intervenes in nor is able to intervene in the interest rate, but one should consider that the low growth which previously hindered rate normalization is being quickly overcome." He further added, "Another important point to note is the sharp increase in mortgage delinquencies and foreclosure properties," urging people to "also watch auction success rates closely." This appears to be a response to renewed speculation activity amid rising housing price expectations.

President Lee also directly addressed criticism of a "policy mismatch" following the government's simultaneous tightening of household loan control and expansion of overall policy financing. "Expanding finance for increased housing supply and increasing loans for genuine demand, including young people, are targeted and essential policies," he stated. He stressed that funding for home purchases and funding to build new housing should not be lumped together as a simple "increase in loans."

"There is financing to increase supply and there is financing to increase demand, but some simply equate 'loan increase = demand increase = house price rise,'" President Lee said, criticizing some media reports and adding, "Some reporters may do this deliberately to incite public opinion and attack the government, even though they are aware of both sides."

He added that structural solutions to relieve the concentration in the capital area will also be pursued in parallel. President Lee stated, "We will also focus on relieving the overconcentration in the capital region, which is the root cause of rising housing prices," listing initiatives such as the accelerated relocation of national institutions to Sejong, swift construction of an administrative capital, the largest-scale relocation of public institutions to regional areas, and the early implementation of three mega-projects and seven key “seed policies.”

A new element highlighted in his message was the government’s intent to prepare not only for rising but also for plummeting house prices. President Lee said, "The government has given instructions to prepare a system to purchase large quantities of substandard homes for public housing purposes in the event of a sharp price crash caused by early and large-scale supply, speculative demand suppression, high interest rates resulting in loan delinquencies, and a surge in foreclosures."

This signals a plan to manage expectations and restrain price increases with policy, while also preparing for a situation where supply expansion, high rates, and increased auctions cause a severe market decline. Although price increases will be restrained, President Lee’s "two-way market stabilization" strategy aims to prevent a sudden price collapse and resulting shock to the financial and real economies.

Regarding the manner of implementing these real estate reforms, President Lee emphasized "quiet reform." He stated, "Reforms that change existing systems and practices—such as tax reform, real estate reform, and medical reform—are said to be harder than revolutions, because they cause anxiety, pain, and resistance among those who benefit from the current system."

He continued, "Once empowered by a mandate from the people, necessary reforms should be carried out quietly and swiftly for the public and country," saying, "There is no need to highlight reformist will or achievements with loud proclamations that only increase the anxiety and resistance of vested interests." He stressed, "Advocacy is the lot of those seeking power; for those who have already won power, the role is action and achievement."

President Lee concluded, "The public’s trust in political groups will be determined by who has tangibly improved and can further improve their lives and livelihoods," and called out, "Let us overcome every abnormality and, as Jensen Huang said, together march toward Korea's golden era as an irreplaceable nation."

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