President Lee Jae-myung on August 13 described the real estate issue as a "ticking time bomb" threatening the lives of citizens and the future of the nation, urging for a bold and rapid increase in housing supply.
He instructed officials to expedite permitting processes and, if existing regulations hinder supply, to secure land by amending laws and systems.
During a meeting with senior aides at the Blue House, President Lee stated, "The excessive concentration of social resources in real estate over a long period has deepened polarization and inequality, and the real estate bubble can no longer be ignored."
He warned, "Real estate prices in South Korea are extremely high globally, and if this situation continues, we could face a phenomenon similar to the 'lost 20 years' or 'lost 30 years' experienced by certain countries."
President Lee emphasized that since virtually all citizens have direct or indirect stakes in real estate, market conditions and public expectations must be accurately reflected. He called for a meticulous adjustment of supply, tax, and financial policies to normalize the market and systematically establish housing stability.
He stressed, "An organic combination of bold and rapid supply, a fair and rational tax system, and detailed and robust financial policies is essential."
Pointing out the significant drop in permitting and construction volumes since 2022, he urged a concentrated policy effort to expand supply. "Since 2022, permitting has been drastically reduced, and construction has also declined significantly, leading to an unavoidable supply cliff. Extraordinary efforts are needed to fill this gap," he said.
President Lee acknowledged the many practical constraints and lengthy timelines associated with supply policies, urging a comprehensive and determined effort to tackle the issue.
He also directed that various permitting processes be expedited and that land acquisition should not be constrained by existing regulations. "If necessary, we must secure land in a bold manner, even if it requires changing laws and systems," he instructed.
President Lee urged that government measures should not be seen as final conclusions but should be refined by incorporating feedback from the public, experts, and opposition parties. He expressed concern that modifying policies could lead to perceptions of inconsistency or indecisiveness.
He stated, "Public officials cannot be 100% perfect. We must do our best to create policy proposals, but when presenting them to the public and political circles, we should reasonably review and transparently discuss any good suggestions or amendments to create more effective policies."
He specifically called for a comprehensive review of the so-called "marriage penalty," where newlyweds face disadvantages in areas like housing applications and loans. "When single, men and women had separate opportunities, but when they come together, those opportunities diminish, which is unreasonable," he said. "We need to identify and rectify the wrongs in each area to ensure that citizens do not feel unfairly treated."
The government announced that it would assess the income requirements for newlywed couples applying for housing loans based on one spouse's income rather than combined income. It will also promote a "three-pronged youth housing support package," which includes improvements to youth housing loans and combined guarantees for monthly rent.
President Lee promised, "We will focus our best efforts to ensure that everyone can enjoy a stable housing environment and achieve the dream of homeownership, moving away from an administrative mindset centered on the convenience of suppliers and continuously improving policies from the perspective of the public."
* This article has been translated by AI.
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