President Lee Jae-myung has defined the real estate issue as a structural risk factor for the Korean economy, citing Japan's example of prolonged economic stagnation.

He emphasized that coordinating interests surrounding supply expansion, tax policy, and financial policy to achieve social consensus is more important than ever, and stressed that real estate policy is a matter of politics that makes responsible conclusions rather than avoiding conflicts.

▲ "Real Estate Issue a National Priority"

President Lee assessed the housing market stabilization issue as one of the biggest tasks for the Republic of Korea in opening remarks at a national discussion forum on real estate policy held at the KBS Building Annex on the 23rd.

He explained that social consensus has formed on the need for measures regarding housing prices, given the large proportion real estate occupies in national assets.

This was analyzed as a judgment that the real estate issue is not merely an asset market problem but a structural task linked to household assets, housing costs, intergenerational wealth disparity, and financial stability.

▲ Warning of Japan's "Lost 30 Years"

President Lee cited Japan's real estate bubble collapse as an example and emphasized that Korea must also be cautious of similar risks.

He explained that Japan experienced a housing bubble collapse following a sharp surge in real estate prices, which led to prolonged economic stagnation, earning it the assessment of "the Lost 20 Years" and "the Lost 30 Years."

He diagnosed that there is considerable concern that Korea's real estate prices are also heading toward a peak. This was interpreted to mean that rising housing prices are viewed not simply as an increase in asset value but as a risk factor raising the possibility of economic imbalance and prolonged stagnation.

▲ President Lee: "Distrust in Past Governments' Real Estate Policies"

President Lee pointed out that while past governments made efforts to resolve real estate issues, the market has developed a perception that housing prices move according to the nature of the administration.

He evaluated that the belief that housing prices rise when certain types of government come to power has begun to be accepted as fact.

This was analyzed as pointing out that market participants' expectations and political signals may have a greater impact on housing prices than the actual effects of policy.

It meant that when trust in real estate policy is weak, the market may move in the opposite direction even if regulations or supply measures are announced.

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▲ Acknowledged Necessity of Supply Expansion but Noted Practical Limitations

President Lee evaluated housing supply as a very important factor in market stabilization while explaining that determining where and how to expand supply is not an easy matter.

He pointed out that attempting to supply housing by deregulating greenbelt areas faces opposition from local residents concerned about environmental damage and deterioration of living conditions.

On the other hand, he explained that some voices advocated that development is necessary even at the cost of accepting certain environmental damage to resolve housing shortages.

He emphasized that while there is principled agreement on supply expansion, interests collide in the actual development areas and methods.

▲ Legitimacy of Market Intervention Through Taxation Also Presented as an Issue

President Lee evaluated tax policy as an important tool affecting supply and demand in the real estate market.

However, he explained that using taxes to suppress demand in specific sectors or increase supply may be an exceptional approach that deviates from the original purpose of taxation.

Accordingly, he diagnosed that debates may arise over whether to actively utilize property holding taxes, transaction taxes, and capital gains taxes as means for real estate stabilization.

This was interpreted to mean finding policy balance between suppressing speculation through tax strengthening and preventing excessive tax burdens.

▲ Emphasized Public Nature of Finance While Warning Against Speculative Lending

President Lee evaluated that finance has roughly half a public nature in that financial institutions' lending capacity is based on national funds.

Accordingly, he indicated that determining how to prioritize the allocation of limited financial resources to whom is an important policy task.

While some argue that lending opportunities should be provided to those seeking profits through housing, he diagnosed that if finance is used for investment and speculation rather than owner-occupation, it could lead to rising housing prices and national harm.

This was analyzed as suggesting that future real estate finance policy could be designed to focus on actual homebuyers. It was possible that strengthening regulations on multi-property owners and investment-purpose loans while increasing financial accessibility for young people and newlyweds and other actual homebuyers could be discussed.

▲ Core of Real Estate Policy: Coordinating Conflicting Interests

President Lee emphasized that the most difficult aspect of real estate policy is coordinating conflicting interests.

He explained that a balloon effect may be repeated where pressing one side creates problems on the other.

He pointed out that increasing supply can create environmental and regional conflicts, strengthening taxes increases tax resistance, and suppressing loans makes it difficult even for actual homebuyers to purchase homes.

Ultimately, it was analyzed that the real estate issue requires political decisions that coordinate costs and benefits for society as a whole rather than meeting the demands of any single group.

▲ Emphasized Responsibility According to Public Officials' Authority

President Lee stated that when the gap between interests cannot be narrowed, power is what makes the final decision, and public officials are elected or appointed for this purpose.

He emphasized that policy decisions may be followed by dissatisfaction, backlash, and criticism, but when necessary, these must be endured.

Asking whether citizens chose a president other than to solve problems despite some conflict and resistance, he said officials must bear responsibility commensurate with exercising their authority.

This was interpreted as a message that real estate policy requires administration that sets a certain direction and takes responsibility for results rather than postponing decisions due to public backlash.

▲ Requested Sufficient Opinion Gathering Before Policy Decision

President Lee emphasized the need for public officials to gather and coordinate opinions from as many citizens as possible before making final decisions.

He explained that the national discussion forum was also a venue to gather opinions from various stakeholders rather than unilaterally deciding real estate policy.

He also proposed that if the forum alone proves insufficient, additional discussion forums could be held under the chairmanship of the Prime Minister.

This was analyzed as intending to strengthen deliberation procedures to secure legitimacy for real estate policy and increase transparency in the policy-making process.

▲ Emphasized Spreading Perception of Real Estate as Living Space Rather Than Investment Target

President Lee evaluated that while the past showed strong perception of real estate as a means to earn money, recent times increasingly emphasize it as a comfortable home.

He explained that opinions have increased regarding the need for policy consideration for young people, newlyweds, and multi-child families.

This showed the possibility that the government's real estate policy could shift from asset price management to housing welfare and protection of actual homebuyers.

It was interpreted as a direction requiring consideration not only of housing supply volume but also of location, quality, affordable prices, and lifecycle-specific support systems.

▲ Optimistic About Possibility of Social Consensus

President Lee evaluated that citizens showed high receptiveness when objective and reasonable conclusions were presented.

Even when assemblies and conflicts occur, he emphasized civic consciousness of expressing opinions through institutional procedures rather than violent means.

Regarding the real estate issue, he envisioned that a certain level of social consensus could be achieved through candid discussion.

This was analyzed as representing the government's will to secure national acceptance through sufficient explanation and public deliberation processes rather than forcing policy.

President Lee also proposed holding additional discussion forums under the Prime Minister's chairmanship if the forum on that day proved insufficient.