In Response to 'Causes of Real Estate Surge'... Lee Says, "Construction Starts Halved After Oh Se-hoon's Election"

President Lee Holds Seventh Press Conference Since Taking Office
"There Are Some Who Blame Mayor Park Won-soon"
Commitment to Speed Up Land Development, Reconstruction, and Redevelopment

President Lee Jae-myung, at a press conference held on the 18th, addressed questions about the "causes of the real estate price surge," stating, "2022 was the year the Yoon Suk-yeol administration took office and Oh Se-hoon was elected mayor," and pointed out that, "Since then, the number of permits and construction starts was reduced by half."

At the press conference, held at the Blue House's Reception Hall under the theme "The Will of the People, The Lives of the People—We Will Pay Closer Attention," President Lee responded to a question about his diagnosis of the causes behind the real estate spike and the government's countermeasures, as described above.

President Lee Jae-myung is answering reporters' questions at a press conference held at the Blue House's Reception Hall on September 18, 2026. Photo by Yonhap News

President Lee added, "Some people still try to blame former Mayor Park Won-soon," before explaining, "From that point in 2022 through 2023, 2024, and 2025, the number of construction starts decreased by nearly half, leading to a significant reduction in supply. This is a short-term cause." He also criticized Mayor Oh Se-hoon's decision to lift land transaction permit zones for real estate last year, saying, "Housing prices in specific areas have soared," and stressed, "In the metropolitan area—and especially in Seoul—the pricing structure for housing is led by Gangnam and its neighboring districts, which have created what is called an 'invincible myth' of real estate."

President Lee went on to say, "With our country's economic growth rate recovering, it is reported that nominal growth exceeded 20% in the second quarter alone. It is the first time since the period of high growth in the 1970s." He further explained, "As the Korean economy makes a turn, a tremendous amount of liquidity is surfacing, which could also be a contributing factor." In addition, he cited the concentration of population and activities in Seoul and the capital region, as well as the enduring myth of real estate's "invincibility," as further reasons why housing prices continue to soar.

However, President Lee analyzed, "Fortunately, recently, a downward trend has begun and is continuing to spread, including in the Gangnam area." He emphasized, "One of this administration's most crucial missions is for Korea to shed its reputation as a 'real estate speculation republic.' I can state clearly that this government will get it done." He added, "We will move to expedite supply as much as possible—whether through land development, reconstruction, redevelopment, urban renewal, or construction permits. We are checking on progress at specific sites, and related data will be released soon. There has already been a significant increase in the number of construction permits."

President Lee also projected that interest rate trends would contribute to stabilizing the real estate market, stating, "The United States continues to raise interest rates, and the gap with our rates has widened again." He noted, "When the economy grows, inevitably, financial interest burdens will increase. These factors will, in any case, also have an impact."

He concluded, "We will continue to implement all possible measures—regulations, supply, taxation, and so forth—so the real estate market should gradually stabilize. Within this process, we are also preparing and implementing tailored policies to address the challenges faced by tenants in the jeonse and monthly rent markets."

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