Sejong: President Lee Jae Myung on Tuesday called on the government to carefully draw up effective financial measures to stabilize the overheated housing market. Lee made the remarks during a Cabinet meeting as the government seeks to stabilize the housing market under a strong policy push by Lee, who has repeatedly warned against real estate speculation.
According to Yonhap News Agency, Lee emphasized the critical role of the financial sector in addressing the real estate issue. During the meeting held in the administrative city of Sejong, he noted that excessive borrowing for real estate investment has left many people feeling disadvantaged. He urged financial authorities to review related measures and called on the land ministry to prepare adequate housing supply plans.
President Lee also highlighted that taxation should remain the government's final real estate policy option, but did not rule out its use if necessary. "Tax measures are ultimately a last resort. In war terms, taxes are like a nuclear weapon, so they should not be used lightly," he stated. "If circumstances require it, however, they must be used, and preparations should be in place."
The backdrop to these comments is a downward trend in household loans since December. This trend follows the government's maintenance of tighter loan and home purchase regulations since last year, implemented in response to surging housing prices in Seoul and parts of the greater metropolitan area.