[2026 Parliamentary Audit] LH President: "Housing Prices Could Plunge"... Stands by Lending Restrictions Despite Criticism From Both Parties (Comprehensive)

"Interest rate hikes could lead to a sharp fall in housing prices
If prices stabilize, people won't lose out by not buying a home right away
Housing costs hurt people's livelihoods and the national economy"

Lee Seonghun, president of Korea Land and Housing Corporation (LH), stood by his position that mortgage lending restrictions should be tightened, despite criticism from ruling and opposition lawmakers. He said the possibility of a sharp fall in housing prices should be considered in light of future interest rate hikes and increased housing supply. He also said he would resign if he failed to stabilize housing prices.

At the National Assembly Land, Infrastructure and Transport Committee's parliamentary audit on Oct. 12, lawmakers from both the ruling and opposition parties criticized Lee over recent remarks suggesting that mortgage lending restrictions should be tightened, including the 600 million won cap on loans for homes valued at 1.5 billion won or less.

Lee Seonghun, president of Korea Land and Housing Corporation, answers lawmakers' questions during a parliamentary audit of Korea Housing Corporation and other entities at the National Assembly on the 12th. Photo by Yoon Dongju.

Um Taeyoung of the People Power Party said, "How is it any different from kicking away the housing ladder for people without homes if the head of LH, which is responsible for housing supply, calls for tighter lending?"

Jeong Il-young of the Democratic Party of Korea added, "Young people and actual homebuyers are deeply dissatisfied with this. We need to speed up supply, and saying that demand should be curbed is not something the head of LH should be saying."

Lee, however, reiterated his position that mortgage lending should be regulated in view of the possibility of falling housing prices. He said a sharp decline could not be ruled out due to future interest rate increases and the effects of housing supply. "If housing prices keep rising, people would have to compete to buy homes. But if prices stabilize, people won't lose out by not buying a home right now," Lee said. "Housing prices peaked in 2021 and then fell significantly as interest rates rose. There is a considerable possibility of a sharp decline."

He also stressed that an increase in housing costs resulting from loans would be detrimental to the national economy. "If housing costs rise relative to household income, that adversely affects people's livelihoods and is bad for the national economy," Lee said. "We need to consider what is in the best interests of the public as a whole."

Lee also said he would resign if he failed to stabilize housing prices. Asked by People Power Party lawmaker Jeong Dong-man whether he would take responsibility and resign if housing prices were not brought under control, Lee said, "Yes," adding, "I will work hard to ensure an adequate housing supply."

Meanwhile, opposition lawmakers sharply criticized Lee over his history of home ownership during the audit. People Power Party lawmaker Kim Mi-ae brought up Lee's past ownership of three homes and pointed out that the apartment in Sejong City, which was reportedly sold, had in fact not completed the registration of ownership transfer.

She also noted that Lee had purchased a home worth about 800 million won at its original sale price entirely in cash, saying, "People in their 30s and 40s are waiting to be able to buy even one apartment," and "There are not many people in the country who can buy a home like President Lee."

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