Lee Changyong: "Seoul Should Convert Office Supply Plans to Housing to Increase Supply" [2025 National Assembly Audit]

Need for Measures to Curb Inflow into Seoul Alongside Housing Supply
Tax Reform Should Be a Fundamental Overhaul of Holding Taxes for Fairness

Lee Changyong, Governor of the Bank of Korea, stated that a policy is needed to dramatically increase housing supply by converting Seoul office (commercial) supply plans into residential units.

Lee Changyong, Governor of the Bank of Korea. Photo by Yonhap News

At the National Assembly's Strategy and Finance Committee audit on the 29th, Governor Lee commented on real estate stabilization measures, saying, "Globally, demand for office space is declining, and with the rise of artificial intelligence (AI), it is expected to decrease further in the future. Therefore, it is more important to supply housing for households rather than offices."

Governor Lee also emphasized the need for measures to curb population inflow into Seoul, alongside housing supply policies. He pointed out, "Even if we increase supply, as long as new homes keep being built, more people from the provinces will move to Seoul to secure a 'smart single home.' Unless we create several alternative places in regional areas, this problem will continue to repeat itself." For this reason, he argued that the issue cannot be resolved by addressing only supply or only demand; a consistent and comprehensive policy approach is required.

He further stressed that tax reforms should not be aimed solely at controlling housing prices, but should be pursued as a fundamental and consistent reform of asset holding taxes to ensure fairness. Only then, maintained over several years, can real estate issues be resolved.