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President Lee Jae-myung speaks during a meeting of senior secretaries and aides held at the Blue House on the 20th. / Yonhap News

President Lee Jae-myung announced on the 30th that the administration will concurrently pursue eradicating real estate speculation and expanding housing supply in Seoul and the greater capital area. The plan aims to correct unfair tax systems that fuel property speculation while maintaining financing designed to support actual end-users and expand housing supply.

President Lee wrote in a post on X (formerly Twitter) that day, "The People's Sovereignty Government will eradicate ruinous real estate speculation by any means necessary."

President Lee emphasized, "Unfair and irrational tax systems that have proven to fuel real estate speculation will also be rectified without fail, if only for the sake of tax justice."

President Lee continued, "For the nation's future and the hope of the next generation, we must eliminate the risks of passing around the ticking time bomb of property speculation and falling into the danger of a lost 30 years."

He added, "Reforms that alter existing systems and practices—such as tax reform, real estate reform, and medical reform—are said to be harder than revolutions because of the anxiety, pain, and resistance from those who stand to lose vested interests under the existing system."

President Lee also raised the possibility of rising interest rates, mortgage delinquencies, and increasing auction listings. Sharing an article regarding Morgan Stanley's forecast for a Bank of Korea base interest rate hike, President Lee stated, "Those interested in real estate speculation should pay special attention to the section in the article below projecting the Bank of Korea's benchmark interest rate at 3.5% in the first quarter of next year, six months from now."

He continued, "While the direction of interest rates is difficult to predict easily, one must consider U.S. interest rate levels, the interest rate differential between South Korea and the U.S., and the rapid overcoming of low growth that previously hindered interest rate normalization."

President Lee remarked, "Another point to note is that mortgage delinquencies and auction properties are increasing significantly," urging, "I hope you also pay attention to the winning bid rates."

He reiterated the policy of expanding housing supply. President Lee said, "The government will mobilize full national capabilities not only for financial and tax reforms but also for expanding and accelerating the housing supply volume."

In particular, he emphasized, "In the short term, an early expansion of housing construction is the optimal measure to overcome weak domestic demand and the limitations of K-shaped growth," adding, "An early and massive supply of housing in Seoul and the capital area is a two-pronged winning strategy that will be executed without fail."

President Lee also mentioned improving permitting processes to expedite supply in Seoul and the metropolitan area. President Lee stated, "In the capital area, especially Seoul, housing permits and construction starts have plummeted for more than three years since 2022," adding, "We will grant maximum incentives for early permitting and groundbreaking, including granting district heads the authority to approve projects of fewer than 500 units."

He also explained, "We have expanded the housing supply workforce at the Ministry of Land, Infrastructure and Transport and instructed them to aggressively identify additional usable land, even for small-scale parcels."

President Lee noted, "I am reminding ministries that adding even a single additional home is both an effective housing policy and a high-value job and welfare measure worth hundreds of millions of won," adding, "As the Minister of Land, Infrastructure and Transport put it, we will ramp up supply as rapidly as possible, as if 'obsessed with delivering supply.'"

He refuted criticisms that an increase in aggregate lending represents a policy misalignment. President Lee stated, "Expanding financing to increase housing supply and raising loan limits for actual end-users, including young people, are effective and necessary pinpoint measures."

He added, "Such claims are made either by those who only understand the crude logic that 'increased lending equals increased demand equals rising home prices,' or by those who deliberately agitate the public and attack the government despite knowing both sides."

President Lee also stressed quiet execution and tangible results in pursuing reforms. President Lee said, "It is sufficient to quietly and swiftly carry out the reforms necessary for the public and the nation using the authority already entrusted by the people," adding, "There is no need to strengthen the anxiety and resistance of vested interests by shouting loudly to boast about reform resolve or claim credit for achievements."

He concluded, "The public's trust in a political group will be determined by who has practically created, or can create, a better life for the people—namely, their livelihood," adding, "Let us overcome all manner of abnormalities and move forward together toward an irreplaceable Republic of Korea."

                                                                                                        Park Young-hoon