President Lee Jae-myung will preside over a "National Public Debate on Real Estate" at the presidential office on the 23rd. The move is intended to broadly gather public opinion on housing supply, financial, and tax policies aimed at stabilizing residential conditions. It also reflects an effort to build national consensus before the government rolls out its previously announced policy to strengthen holding taxes on ultra-high-priced homes. Thousands of citizen suggestions have already been posted on the debate's website. Among them are scathing criticisms, such as one stating that "the current lending restrictions are far too harsh and irrational for wage earners who work diligently," questioning why the government is kicking away the housing ladder. Suggestions emphasizing the importance of supply policies over taxation continue to pour in as well, arguing that attempts to rein in home prices through punitive taxation were proven a failure during the Moon Jae-in administration.
It is difficult to predict how much of this public appeal will be reflected in future government policy. In particular, the threshold for housing finance services is bound to keep rising for the time being, tied to measures such as the government's total lending caps aimed at curbing household debt. Just recently, IBK Industrial Bank of Korea halted sales of variable-rate mortgage loans on the 22nd. The five major commercial banks, including KB Kookmin, have also been tightening mortgage lending this month. It is likewise uncertain whether the suggestion that redevelopment and reconstruction regulations should be eased to increase housing supply in the greater Seoul area will be turned into policy. This is because Kim Yong-beom, head of the presidential policy office, previously showed a difference in stance, saying that "redevelopment and reconstruction are not a master key."
President Lee has defined the current situation as a "ruinous real estate republic," demonstrating his resolve to stabilize the market. On the ground, however, the pain is growing for genuine homebuyers who are blocked by bank lending thresholds while trying to secure their own homes. Under such conditions, it is difficult to precisely target only speculative demand. President Lee's recent sale of his own home for 2.9 billion won, in which he set up a mortgage worth 1.7 billion won without having received the full balance, also shows how difficult it is to buy and sell homes amid the current lending restrictions. While it is necessary for the government to suppress artificial demand in order to prevent housing speculation, it must not leave innocent genuine buyers and the retired generation—who struggle to make a living in old age unless they can rent out their homes—to be hit indiscriminately by stray fire. The government should not treat this debate as a mere formality, but should carefully examine public opinion and reflect it meticulously in its housing policy.
