[Editorial] Presidential Address Must Offer Solutions for Ordinary Citizens and Youth

The government has once again yielded to public opinion and introduced a makeshift real estate prescription. The Ministry of Land, Infrastructure and Transport announced on the 17th that it will extend the deadline for applications to defer owner-occupancy requirements for homes within land transaction permit zones in Seoul and surrounding Gyeonggi Province from the end of this year to the end of next year—a one-year extension. This outcome resulted from pushing through coercive demand-suppression measures without thorough prior discussion of their side effects, thereby inviting market chaos. The press conference by President Lee Jae-myung on the 18th is expected to address policies that triggered a sharp decline in approval ratings and reaffirm commitments to national governance reform. We hope the president will sincerely express reflection and vision regarding real estate, a major concern for the public.

Whenever side effects emerge, creating exceptions and appending them has become a chronic ailment of our real estate policy. The tax reform proposal released last month also led to an excessive increase in tax burdens on non-resident single-homeowners, prompting hurried revisions amid fierce public backlash. This occurred because stringent regulations caused housing listings to vanish, driving up apartment prices and worsening rental shortages. Home prices in Seoul have risen for 84 consecutive weeks, nearing the record of 85 consecutive weeks of increases during the Moon Jae-in administration. Ordinary citizens without homes and youth preparing for their futures are struggling.

For everyone, acquiring a home is a once-in-a-lifetime major event. Frequent policy revisions and stopgap measures hinder rational decision-making and foster distrust in governance. Housing policies announced under the guise of helping young people—such as 'converted bus houses' and 'residential conversion of knowledge industry centers'—are met with cold reception because the government and ruling party neglected to understand what demanders actually want. While obsessively suspecting acquisitions of Gangnam apartments in Seoul of speculation and pressuring asset holders, it has become increasingly difficult for non-homeowning ordinary citizens and youth to find a place to stay.

Without effective housing supply measures, relying solely on punitive regulations and taxes cannot prevent the 'triple surge' where home prices, rents, and monthly lease rates rise simultaneously. The result of consistently pursuing one-way policies based on the notion that 'there is no market that can defeat the government' has deepened instability in the housing market. Policies pushed by the government and ruling party in the past, backed by soaring Ha Deon (President) approval ratings and an overwhelming number of Democratic Party seats, ultimately backfired as boomerangs in the form of public backlash and sharp declines in approval ratings. President Lee should demonstrate his resolve in the press conference to address livelihood issues for ordinary citizens and youth—including housing—and pursue market-friendly governance reform.