LH President: "Home Price Surge Due to Housing Shortage Under Previous Administration... Prices Will Plunge as Supply Ramps Up"

President Lee Seonghun: "I sold two homes and will sell the rest if I can"
The remaining home was "inherited and jointly owned by four relatives."

Lee Seonghun, president of Korea Land and Housing Corporation (LH), said the recent rise in home prices was caused by a shortage of housing supply under the Yoon Suk Yeol administration.

Lee Seonghun, president of Korea Land and Housing Corporation (LH), answers lawmakers' questions about the company's rising debt during a parliamentary audit by the Land, Infrastructure and Transport Committee at the National Assembly on the 12th. Yonhap News.

At a comprehensive audit of the Ministry of Land, Infrastructure and Transport by the National Assembly's Land, Infrastructure and Transport Committee on the 23rd, Lee answered "Yes" when People Power Party lawmaker Kim Eun-hye asked whether he was certain that home prices would fall.

He added, "There is absolutely no doubt that rising home prices and rising jeonse and monthly rental prices are due to a shortage of supply. That is because there are not enough completed homes."

Lee said, "Housing becomes available for occupancy and completed homes are supplied only after construction begins. During the previous administration's three years in office, housing starts in the Seoul metropolitan area plunged to half, or even one-third, of their previous levels." He added, "It's as if a three-year construction period came with a ticking time bomb set to trigger a three-year surge in home prices."

"That is why upward pressure on prices is continuing now," he said. "Supply will begin in earnest over the next three years under our government. Home prices will then plunge, and once the market recognizes this in advance, prices will inevitably stabilize."

Asked whether he would sell the homes he owns if he was certain prices would fall, Lee said, "I sold two homes," adding that he would "sell the rest if I can."

However, he explained that the remaining home was "inherited and jointly owned by four relatives."

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