President Lee Presides Over Cabinet Meeting
Sharp Rise in Real Estate Prices Compared to a Game of Hot Potato
"It Will Inevitably Lead to an Accident... We Must Shift Toward Productive Finance"
"Strict Action Needed Against Market-Disrupting Activities"
President Lee Jaemyung recently stated that the current upward trend in the real estate market is being excessively overestimated, emphasizing that there is a very high possibility that Korea could end up like Japan. He stressed that as the era when real estate was the only investment vehicle for the public has passed and alternative investment options are increasing, it is necessary to normalize the capital market as well.
On the 14th, President Lee presided over a Cabinet meeting at the presidential office in Yongsan, saying, "If we compare real estate prices to national income on an international scale, Korea is probably ranked first." He expressed concern over the sharp rise in real estate prices in the Seoul metropolitan area, including some districts in Seoul, and reiterated his call for policies to redirect funds concentrated in real estate into the stock market.
President Lee added, "The idea of increasing one’s wealth through real estate investment is now a thing of the past," and warned, "At some point, an accident is bound to happen." He further told Financial Services Commission Chairman Lee Eogwon and Minister of Land, Infrastructure and Transport Kim Yoonduk, "This is a game of hot potato. Sooner or later, it will inevitably explode." He emphasized, "We must shift toward productive finance and foster a societal atmosphere and judgment that encourages rational, long-term investment."
He also said that strict measures are needed against market-disrupting activities that distort information for profit. President Lee pointed out to Minister Kim, "Market disruption or the formation of abnormal prices through information distortion must be prevented at all costs," and sharply asked, "Are you prepared to face the possibility of the country collapsing?"
President Lee continued, "Recently, there have been reports that false and exaggerated advertisements exploiting artificial intelligence (AI) technology are rampant on social networking services (SNS)." He added, "There are even suspected cases of real estate price manipulation. Strict action must be taken against such market-disrupting activities, which cause significant harm to the national economy." He also requested fundamental measures to correct such deviations from market order.
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