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President Lee Jae-myung reviews materials during a Cabinet meeting held at Cheong Wa Dae on the 1st. / Yonhap News

"We must acknowledge that government proposals are not always right, nor can they be perfect."

President Lee Jae-myung moved to restore momentum in state affairs, emphasizing flexibility in policy administration. Rather than pushing forward reform policies while enduring strong pushback, he appears to be placing weight on "pragmatic state administration" that accepts counterarguments raised on the ground and adjusts course when necessary. This is also interpreted as a calculated step to minimize public alienation and build tangible achievements at a time when his administration's approval ratings have dropped to their lowest point since taking office.

According to political circles on the 2nd, the government withdrew its plan to reduce the comprehensive real estate holding tax deduction for owners of a single home who do not reside in the property, while also executing a U-turn on the proposal to narrow the eligibility for the basic pension, opting instead to maintain the current system.

Initially, both were policies where President Lee had demonstrated a strong drive for reform. Until recently, he expressed a negative view toward owning a single home without actual residency, and earlier this year he called for restructuring the basic pension into a system where lower-income brackets receive greater benefits while higher-income brackets receive less.

However, as backlash from the National Assembly and stakeholders intensified during the policy implementation process, the administration opted for revised plans rather than sticking to its original stance. Observers suggest that the center of gravity in state administration is shifting toward responding flexibly to specific measures facing significant public resistance, while keeping the broader policy direction intact.

The recent decline in approval ratings is also cited as background for this change. Facing the risk that continued friction with parliament and stakeholders could deepen public alienation, the administration is seeking to ease political burdens through a stance of inclusion, compromise, and flexibility. President Lee's prompt acceptance of the resignation of Chief Presidential Secretary for Policy Kim Yong-beom the previous day is interpreted in the same context.

Within political circles, some view this series of moves as the expansion of President Lee's signature pragmatism across overall governance. The focus is shifting toward practical policy outcomes and public acceptability rather than reform objectives alone.

President Lee also emphasized during a Cabinet meeting on the 25th of last month, "When pursuing reforms, raising one's voice and setting sharply elevated targets may easily draw praise," adding, "Doing so, however, heightens resistance and compounds hardship. We must take a pragmatic and effective approach."

President Lee countered claims from some quarters that real estate policy had retreated following the government's announcement of real estate tax reform measures.

Writing on X (formerly Twitter) that day, President Lee asked, "It is simply a matter of policy choice where preferences diverge. Is reversing a policy stance inherently unjust, and adhering to it unconditionally right?"

He continued, "Look at the entire content of the policy rather than just hard-line assertions, and examine why housing prices in areas like Gangnam are plunging right now. One must consider whether it is reasonable to turn away from what matters and disparage an entire effort based on a minute fraction without viewing the whole picture. This is a time when genuine politics and a competition to deliver results are essential, rather than demagoguery, slander, and unconditional criticism founded on falsehoods."

An official from Cheong Wa Dae stated, "Gathering diverse public opinions when drafting policy is a natural process," adding, "There is no change in the government's overarching policy stance, including the normalization of the real estate market."

                                                                                                             Hong Sun-mi