President Lee Jae-myung is pushing for a public forum to gauge public sentiment on real estate ahead of the July announcement of the tax code revision. The plan is to directly gather opinions from a wide range of market participants—not only real estate experts but also genuine homebuyers, investors and licensed brokers—to craft comprehensive measures including tax reform.
Kim Yong-beom, head of the Office of National Policy at the presidential office, said at a Kwanhun Club forum held at the Korea Press Center on the 24th that the recent real estate market situation is "a challenging situation," adding, "We are preparing a public debate to hear diverse voices, including operators of mom cafes, in order to find reasonable solutions." The forum, to be hosted directly by President Lee, is reportedly set to be held around the 15th of next month.
The forum is expected to broadly discuss tax reforms including the holding tax and capital gains tax, as well as expanding housing supply, loan regulations and measures to protect genuine homebuyers. A ruling party official explained, "It will literally be a no-holds-barred debate," adding, "It is part of President Lee's style of deliberative politics, going through as much public discussion as possible before rolling out policy." Instability in the jeonse market and the housing burden on young people and newlyweds are also cited as major agenda items. Regarding real estate tax reform, Kim said, "We are running hundreds of simulations."
Kim Yong-beom Declares 'All-Out Offensive': "Yeongdeungpo, Guro Quasi-Industrial Zones Can Be Used"
Kim Yong-beom, head of the Office of National Policy, emphasized at the Kwanhun Club forum held at the Korea Press Center on the 24th that "right now we need to discuss extraordinary measures, to the point of saying we must 'just build houses no matter what.'" This is interpreted as revealing the government's sense of crisis that demand-suppression-focused policies alone have limits in stabilizing the real estate market.
In particular, Kim drew attention by mentioning specific alternatives that could dramatically increase housing supply within Seoul. Diagnosing the current real estate market instability as "due to structural supply shortages stemming from project financing (PF) defaults two to three years ago and the aftermath of high interest rates," he stressed the need to utilize quasi-industrial zones in the Yeongdeungpo and Guro areas.
Kim raised his voice, saying, "There are many old complexes remaining in industrial districts within Seoul, such as Yeongdeungpo and Guro," and "When I asked why housing can't be built in such places, they said the manufacturing base in Seoul must be maintained, but now is the time to discuss extraordinary measures to increase supply." He also hinted at disagreement with the Seoul city government over policy initiative, saying, "It's also connected to the question of who takes the lead in establishing (supply) plans."
Regarding the criticism that the current surge in housing prices resembles that under past progressive administrations such as the Roh Moo-hyun and Moon Jae-in governments, Kim called it "a meaningful but lazy observation," analyzing it as "a phase in which structural supply-demand issues and the macro (liquidity) environment are combined in a very difficult way."
He explained, "2023 and 2024 were a period when supply-related companies suffered extreme pain due to the PF crisis and high interest rates," and "Because of this, supply preparation fell short by 30 to 40 percent compared to ordinary years." Since it takes two to three years from breaking ground to actual move-in for housing supply, the diagnosis is that the supply vacuum at that time is leading to a structural supply shortage after 2026.
On the demand side, by contrast, the analysis is that an unprecedentedly strong liquidity-driven market has formed amid the semiconductor boom and rising corporate profits, stimulating the real estate market.
Supply shortage due to PF defaults two to three years ago
"Now is the time to just build houses no matter what"
Demand-suppression-focused policy effectively at its limit
Real estate taxes involve many stakeholders
Based on this diagnosis of structural supply-demand imbalance, the government plans to hold a "national grand debate" on real estate next month to work out solutions. According to the ruling party, the presidential office and relevant ministries are preparing a public forum to discuss the real estate market overall around the 15th of next month. It is expected to take a format similar to the existing town hall meetings chaired directly by President Lee Jae-myung.
The forum is expected to draw the participation of virtually all major real estate market stakeholders—not only professors and tax experts but also mom café operators and members, real estate YouTubers, licensed brokers, young people without homes, newlyweds and multiple-home owners. The presidential office's decision not to place limits on who can be invited is interpreted as an intention to broadly hear views for and against before announcing policy and to build social consensus.
A key presidential office official explained, "The aim is not to reach a specific conclusion at the forum, but for it to be a place where President Lee directly listens to diverse opinions," adding, "If opinions arise that the holding tax should not be raised, it could be a process of also asking what the alternative would be and finding common ground." This means the government will directly hear not only experts' analyses but also the on-the-ground voices that market participants feel firsthand.
The forum is expected to discuss real estate policy as a whole—not only supply expansion but also taxation, financial regulations, reconstruction and redevelopment, the jeonse market and measures to protect genuine homebuyers. In particular, with the tax code revision set to be announced at the end of July, reform of the holding tax and capital gains tax is cited as the biggest issue.
Asked about the direction of real estate tax policy, Kim also said, "Rather than trying to rein in real estate through taxation, taxation is an important subject in terms of how to manage it," adding, "We are running hundreds of simulations to find reasonable solutions." He continued, "There is the issue of tax fairness, and also the goal of stabilizing the housing market," and "We are broadly reviewing not only state-run research institutes but also overseas cases."
He added, "President Lee has also presented several principles," explaining, "He set out criteria that genuine ownership and residence must be distinguished, that single-home owners and multiple-home owners must be viewed differently, and that the issue of ultra-high-priced housing must also be examined together."
"Single-home, high-priced and multiple-home owners must all be viewed differently"
In particular, Kim emphasized, "We intend to hear truly many opinions," adding, "We will carefully decide policy through public debate, including those with direct interests and mom café (operators)."
A two-term lawmaker from the Seoul metropolitan area noted, "When it comes to real estate, virtually all citizens are stakeholders," and "The moment a real estate policy is announced, interests inevitably clash." He continued, "It is important to set a direction after sufficiently hearing both sides on contentious issues, and to build public consensus."
The lawmaker said, "I see it as part of the 'deliberation' President Lee emphasizes," predicting, "Along with gathering public opinion, it will be able to secure the legitimacy of the policy."
