Lee Jae-myung Urges Property Owners to Hand Over Speculative Assets Before Tax Increases

Leadership has taken a firm stance against property speculation by announcing significant plans to control the volatile housing market. Multiple property owners have been explicitly warned: consider selling their speculative assets immediately before property tax rates are substantially increased. This decision reflects deep concern about the social impact of unchecked housing price surges.

Social Impact of the Ongoing Housing Crisis

The worsening housing situation has created a concerning social crisis. Millions of young people face inability to buy homes due to continuously soaring property valuations. The increasing financial burden forces many young individuals to delay or cancel plans for marriage and having children, posing a threat to the country’s demographic and social structure. This is not just an economic issue but an intergenerational crisis affecting long-term societal stability.

Government Policies: A Mix of Incentives and Tax Pressure

The strategy combines a carrot-and-stick approach—offering a “last chance” for property speculators to voluntarily sell assets, followed by the threat of stricter tax enforcement for those who refuse. The government is committed to controlling the market by “any means necessary,” signaling that regular regulatory measures are no longer considered sufficient.

Previous efforts included tighter lending regulations, but these measures proved insufficient to curb price increases. A more aggressive tax approach is seen as a necessary tool to change the behavior of multiple property owners and cool speculative demand.

Market Continues to Rise Beyond Government Expectations

Market data provides important context for the urgency of these policies. Apartment prices in Seoul have increased for 52 consecutive weeks, indicating strong bullish momentum and resilience against regulatory tightening. This pattern suggests that fundamental factors—limited supply, strong demand, and possibly speculative capital flows—continue to dominate market dynamics.

Public Surveys Reveal Low Satisfaction with Government Response

Public sentiment reflects skepticism about the effectiveness of current strategies. The latest Gallup Korea survey shows significant dissatisfaction with housing policies, with 40% of respondents expressing discontent and only 26% supporting the current approach. This 14-point percentage gap indicates a serious trust crisis.

Public projections are also concerning: nearly half of respondents (around 48-50%) expect housing prices to continue rising next year, while only 19% foresee a decline. This pessimism indicates doubts that government interventions will succeed in reversing fundamental market trends.

Political Implications and Future Challenges

Inability to control the housing crisis has become a significant political liability. Housing access remains one of the most sensitive issues for young voters, and approval ratings could decline if policies do not show measurable results soon. The challenge for the government is to find a balance between sufficiently strong intervention to satisfy the public and avoiding overly extreme measures that could destroy the property market and disrupt the broader economy.