[E-Daily Reporter LEE DAWON ] President Lee Jae-myung reaffirmed his intention to continue the existing real estate policy framework of increasing housing supply while curbing loans that stimulate demand. He also maintained his stance on stabilizing housing prices by utilizing a combination of regulations, supply measures, and tax policies.

At a press conference held at the Blue House on the 18th, President Lee stated regarding future real estate policies, “Since we will take all possible measures—including regulations, supply, and tax policies—the real estate market will gradually stabilize.”

First, the government will continue its policy of expanding supply. President Lee stated, “We will increase supply as quickly as possible through measures such as land development—including building permits—as well as reconstruction, redevelopment, and urban renewal.”

He emphasized that the government is continuously monitoring the progress of supply expansion. “The Prime Minister’s Office checks this daily, and I receive weekly reports, identifying specific locations to verify progress,” he said, adding, “We will release data soon, but the number of building permits is increasing significantly.”

Monetary policy will also maintain the current approach of simultaneously supporting the supply side and curbing demand. President Lee said, “We are expanding financing as much as possible in areas where housing supply can be increased,” adding, “On the demand side, which stimulates demand, we will continue existing lending policies.”

This means that while funding to support housing supply will be expanded, loans that stimulate purchasing demand will continue to be curbed. In essence, the emphasis is on continuing the current stance of expanding supply and managing demand rather than making a separate policy shift.

He identified the concentration of population in the Seoul metropolitan area and the so-called “myth of real estate’s invincibility” as the root causes of housing price volatility.

President Lee stated, “The most fundamental issue is concentration in the Seoul metropolitan area,” adding, “All economic power, all infrastructure, and all living conditions are concentrated in Seoul, Gyeonggi Province, and Incheon.” He continued, “That is why we are doing everything in our power to implement policies for balanced national development.” Accordingly, the government is pushing forward with the relocation of public institutions to regional areas and the move of national agencies to Sejong. The aim is to reduce housing demand by dispersing the jobs and residential demand currently concentrated in the Seoul metropolitan area.

He also pointed to the long-standing practice of using real estate as a means of wealth accumulation as a cause of rising housing prices. President Lee diagnosed the situation, saying, “Seoul’s housing price structure is driven by Gangnam—which created the so-called ‘invincible myth’—through the concept of ‘one solid property.’ Factors such as supply shortages and expanded lending have contributed to this, and recently, liquidity has also been increasing.” He cited reduced housing supply as a short-term cause. President Lee explained, “Since 2022—the year the Yoon Suk-yeol administration took office and Oh Se-hoon was elected mayor—the number of permits issued and construction starts has been cut in half,” adding, “By last year, the figure had fallen to nearly half, resulting in a significant contraction in supply.”

He further assessed the current housing market as undergoing a “leveling-off” process, in which prices in the Gangnam area are falling while those in outlying areas are rising.

President Lee said, “The good news is that prices have recently begun to fall in areas including Gangnam, and this decline is continuing to spread,” adding, “Of course, prices in outlying areas are rising, but whereas in the past Gangnam was at the peak and other areas were lower, it now seems a process of leveling off is underway, with prices falling here and rising slightly there.”

Regarding the jeonse system, he drew a clear line, stating that his past remarks did not mean he intended to eliminate jeonse through policy.

When asked if he had previously referred to jeonse as a “system that should disappear,” President Lee replied, “I recall saying it would disappear.” His point was that he had not announced a policy direction to abolish the jeonse system, but rather predicted that jeonse would fade away in response to market changes. In his remarks that day, he did not mention any separate additional measures regarding rising jeonse prices or the shift from jeonse to monthly rent.