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South Korean housing market stabilization efforts

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2026-10-20 02:27 UTC → 2026-10-21 09:35 UTC · added ~~removed~~

South Korean President Lee Jae-myung has outlined a multi-faceted strategy to combat real estate speculation and stabilize the national housing market. Initially, the administration focused on addressing price volatility caused by a decline in building permits and long-term issues such as excessive household debt and regional concentration in Seoul. Proposed solutions included expanding public long-term rental housing for youth and the middle class, as well as instructing the Korea Land and Housing Corporation to provide purchase guarantees for unsold units to encourage new construction. As the situation progressed, President Lee projected that housing supply normalization would not occur until after 2028 due to the structural supply gap created by previous declines in construction permits and starts. To mitigate this, he called for a “supply blitzkrieg” to accelerate land development and permitting processes. Additionally, the President emphasized the need for “tax justice,” advocating for a taxation system that distinguishes between primary residences for living and properties held for investment purposes. More recently, President Lee has intensified these efforts by ordering a “supply blitz” to address structural shortages, emphasizing that actual construction and move-ins are more critical than mere announcements of housing numbers. During a visit to the Incheon Gyeyang 3rd Generation New Town, he directed officials to drastically reduce the time required for land development, permits, and construction. Proposed measures include the sale of undeveloped land to allow buyers to manage their own development, expanding financial incentives, and increasing manpower at the Korea Land and Housing Corporation. To prevent delays, Lee also called for legislative improvements regarding civil litigation during land expropriation. In response, the Democratic Party has prioritized the “Modular Housing Special Act,” which utilizes pre-fabricated structures to potentially reduce construction periods by 20% to 30%.

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