President Lee Jae-myung emphasized on August 30 that the "people's sovereignty government will eradicate destructive real estate speculation at all costs," stating that the government will mobilize all national resources for financial and tax reforms, as well as increasing and expediting housing supply.
In a post on X (formerly Twitter), President Lee said, "We will correct the unfair and unreasonable tax system that has been shown to encourage speculation, as a matter of tax justice." He added, "We must eliminate the risks of real estate speculation and the lost 30 years for the hope of the next generation."
Recently, within the Democratic Party, there have been calls to broaden the recognition of 'unavoidable non-resident reasons' for one-homeowners in the government's tax reform plan, suggesting a more lenient approach.
Regarding supply measures, President Lee stated, "We will definitely implement early expansion of housing construction. Since 2022, housing permits and construction in the metropolitan area and Seoul have sharply declined for over three years. We will provide maximum incentives for early permits and construction by granting district mayors the authority to issue permits for projects under 500 units."
He also addressed criticisms from some media that the government is tightening financial regulations while increasing total loan amounts, saying, "This may be an attempt to incite the public and attack the government. However, expanding finance for increased housing supply and increasing loans for actual demand, such as for young people, is a necessary targeted policy."
President Lee added, "As the Minister of Land said, we will quickly increase supply as we are 'crazy' for not being able to supply enough. The Prime Minister is checking progress daily, and the Blue House is also conducting regular reviews."
Furthermore, he advised those interested in real estate speculation to pay particular attention to reports predicting a 3.5% interest rate from the Bank of Korea in the first quarter of next year.
While noting that the government does not intervene in interest rates, he emphasized the need to consider the current situation where low growth, which hindered interest rate normalization, is being rapidly overcome.
He also pointed out, "One more thing to note is that there has been a significant increase in mortgage delinquencies and auction properties. I hope you pay attention to the bidding rates as well."
President Lee explained that the government has instructed the preparation of a system to purchase a large number of homes below a certain standard for public housing in anticipation of a potential housing price crash due to early mass supply, suppression of speculative demand, and a surge in delinquencies and auctions caused by high interest rates.
He remarked, "Reform is said to be more difficult than revolution due to the anxiety, pain, and resistance of those losing their vested interests. The challenge belongs to those seeking power, while the responsibility of those who have already seized power is to deliver results. There is no need to amplify the anxiety and resistance of vested interests with loud proclamations."
He concluded, "The trust of the people in political groups will be determined by who has practically improved and can improve the lives of the citizens. Let us overcome all abnormalities and move toward an irreplaceable Republic of Korea that creates a golden era, as Jensen Huang said."
* This article has been translated by AI.
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