President Lee Jae-myung on October 5 defined the suppression of real estate speculation and price stabilization as a national task that must be achieved, expressing his determination to break free from the so-called 'Republic of Real Estate Speculation.'
He emphasized the need for a comprehensive approach that includes tax reform, loan adjustments, housing supply, and the relocation of public institutions and businesses to achieve housing price stability.
On this day, President Lee posted several messages related to real estate on X (formerly Twitter). He stated, "It is difficult for structural issues like real estate, which have persisted for decades, to improve quickly with just a few short-term measures. However, suppressing real estate speculation and stabilizing prices are national tasks that must be accomplished. It is very challenging, but it is not impossible."
He diagnosed that the failure of past democratic governments' real estate policies to achieve expected results stemmed from their inability to fully implement necessary reforms. He noted, "Excluding conservative governments that encourage real estate speculation, every democratic government has made efforts to curb it, but they have not achieved their goals. While there are various reasons, one cause may be the failure to push through necessary reforms due to resistance and backlash."
He added, "Even if it is disappointing, please be patient and wait a little longer. I would appreciate it if you could judge based on the results."
In a subsequent post, President Lee proposed expanding housing supply in Seoul and the metropolitan area as a specific measure for stabilizing real estate prices. This aims to accelerate housing supply while revitalizing the sluggish construction market.
He emphasized, "The construction of housing in Seoul and the metropolitan area is an urgent and important policy that not only provides early supply of the much-needed housing but also stimulates the domestic economy and construction sector simultaneously."
President Lee explained that he is overseeing the early expansion of housing permits and land supply at a government-wide level, with the Prime Minister in charge, and that he receives weekly reports on the results.
For projects that have received permits but are delaying construction due to concerns about sales, he decided to utilize the LH (Korea Land and Housing Corporation) system for guaranteeing the purchase of unsold units.
He stated, "Recently, housing permits have increased by about 50% compared to the same period last year, and there are many cases where projects hesitate to start construction due to sales concerns. Therefore, I instructed LH to guarantee the purchase of unsold units for rental purposes."
The purchase guarantee means that LH promises to buy unsold units from privately constructed homes to convert them into rental housing, aiming to reduce the financial risks for private developers and expedite construction.
President Lee also directed the new Minister of Land, Infrastructure and Transport, Hong Ji-sun, and LH to commit to early mass supply, stating, "We must focus on this with the fate of the nation at stake."
He concluded, "It will take some time, but through tax normalization, loan adjustments, expanded supply, and the relocation of administrative agencies, public enterprises, and businesses, housing prices will definitely stabilize."
According to the Ministry of Land, Infrastructure and Transport's housing statistics for August, housing permits in Seoul from January to August this year reached 39,940 units, a 40.4% increase compared to the same period last year. During the same period, construction starts in Seoul also increased by 41.1%. However, the number of completed units in Seoul decreased by 19.1%, indicating that it will take time for the increase in permits and starts to translate into actual occupancy.
On October 1, LH announced a purchase guarantee for unsold units in public housing on public land in the metropolitan area, which will be available for use by 2027, as part of the government's rapid housing supply plan.
* This article has been translated by AI.
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