The Mystery of Lee Jae-myung's Real Estate Policy: Clues from Economic Mentor Lee Hanju

Appointment as State Affairs Planning Committee Chairman... Architect of "Basic Housing"
From Expanding Supply to Easing Regulations... A Different Approach from the Moon Administration
Strong Trust from President Lee... Previously Involved in Multi-Home Ownership Controversy

With the launch of the Lee Jae-myung administration, questions about the new government's real estate policy continue to circulate in the market. This is because, during the presidential campaign and in the official platform, the Democratic Party's real estate policy was only addressed in general terms, mentioning concepts such as "increasing supply" and "strengthening housing for ordinary citizens." As a result, there remains widespread skepticism in the market that "since it is a Democratic administration, it will be the same as before, filled with regulations."

Lee Hanju, appointed as the first Chairman of the State Affairs Planning Committee under the Lee Jae-myung administration. Photo by Yonhap News.

Against this backdrop, attention is focusing on a key figure who may offer insights into the new government's "real estate blueprint": Lee Hanju, head of the Democratic Research Institute, who was appointed as the first Chairman of the State Affairs Planning Committee under the Lee Jae-myung administration. Lee graduated from the Department of Biology at Seoul National University and earned his master's and doctoral degrees in economics from the same university. He is a distinguished professor at Gachon University and currently serves as the head of the Democratic Research Institute, the Democratic Party's think tank. He has been a long-time "economic mentor" to President Lee since the latter's tenure as mayor of Seongnam, and is well-known as the architect of the so-called "Basic Series" policies.

There is a high likelihood that the philosophy Lee has presented in his research and public statements will be directly reflected in state affairs. In real estate policy, Lee has consistently emphasized the parallel pursuit of "housing justice" and "market stability." Housing justice means that everyone has the right to adequate housing necessary for a humane life. Market stability refers to ensuring that this right is not undermined and that people do not feel anxious due to market price fluctuations.

During his tenure as president of the Gyeonggi Research Institute, Lee led policies to expand supply, such as the Gyeonggi-do Basic Housing and long-term public rentals, while also partially accepting private sector supply and market principles. He has stated, "The market can only function if there is basic housing for which the public sector is responsible," and emphasized that "public interest and market efficiency are not mutually exclusive but must go hand in hand." In a media interview immediately after the presidential election, he declared his intention to expand supply, saying, "If we demonstrate a sincere commitment to increasing supply, there will be no room for speculation to revive."

At the same time, he has also indicated an intention to refrain from implementing separate demand-suppression policies. In particular, regarding tax regulations, he has consistently maintained the position that stabilizing housing prices should not be pursued through taxation. In the past, he stated, "I am opposed to calls for abolishing the comprehensive real estate tax. Once it is lowered, it cannot be raised again, and the resulting tax revenue shortfall would be serious," emphasizing the importance of tax policy consistency. However, he also expressed the view that "it is necessary to readjust the reality where a couple of elementary school teachers who have saved diligently end up being subject to the comprehensive real estate tax simply because their home's value has increased," suggesting that the tax burden on single-homeowners who are genuine end-users should be adjusted rationally.

In summary, Lee's perspective on real estate can be characterized as a "pragmatic approach." It is expected to differ from the Moon Jae-in administration, which was criticized for focusing too heavily on public interest at the expense of market trends. The direction and challenges of real estate policy are expected to include expanding supply in the Seoul metropolitan area, easing housing finance regulations, and addressing real estate polarization. In particular, the policy keyword of "harmonizing public and private sectors" could be directly linked to major redevelopment and reconstruction projects.

Meanwhile, Lee was previously embroiled in allegations of real estate speculation. In 2021, while serving as policy chief for the Lee Jae-myung campaign, it was revealed that he owned 17 properties, including apartments, land, and commercial buildings, leading to suspicions of speculative behavior such as unlawful gifting. At the time, he stated, "I have nothing to do with speculation, but I apologize for causing controversy," and stepped down from the campaign, which brought the issue to a close and led to a period out of the media spotlight. For Lee, this experience may serve as a direct lesson in the sensitivity of public opinion regarding real estate.