Lee faces opposition backlash over real estate policy

President Lee Jae-myung on Feb. 2 criticized the People Power Party, saying it was time to end what he called “ruinous defenses of real estate speculation and anachronistic red baiting.”

President Lee made the remarks in a social media post linking to a news article that cited People Power Party chief spokesperson Choi Bo-yoon’s criticism of the Lee administration’s Jan. 29 housing supply measures. In a statement the previous day, Choi argued that the plan to supply about 60,000 housing units in prime locations across the Seoul metropolitan area was misguided, saying the fastest and most realistic solution lay in deregulation and revitalizing private sector led redevelopment and reconstruction. She added that the proposal was effectively no different from telling the public to accept government allocated housing.

Lee pushed back against the opposition’s comparison of the policy to a North Korean style rationing system, characterizing it as ideological red baiting. On Jan. 31, he also dismissed criticism from the People Power Party, saying some critics fail to understand even at a kindergarten level. A presidential office official said the president responded because the opposition was making baseless claims.

Later that day, President Lee shared another news article on social media reporting that a rapid sale listing at an apartment complex in Seoul’s Gaepo neighborhood had lowered its asking price by about 400 million won. The post was widely seen as part of continued pressure on multiple home owners to put properties on the market ahead of the May 9 expiration of a temporary suspension on heavier capital gains taxes for sellers of multiple homes.

The presidential office reiterated that the suspension of heavier capital gains taxes for multiple home owners will end on May 9 without exception. Spokesperson Kang Yu-jung said President Lee has repeatedly emphasized the deadline, calling it a matter of social commitment and policy consistency.

Asked whether the remarks signaled possible tax hikes, including higher property holding taxes, Kang said the president has previously described holding taxes as a “last resort.” She said the government is pursuing a range of real estate policy tools and will make every effort to ensure they produce tangible results. Kang added that revisions to holding taxes would be considered only if all other measures prove ineffective, leaving open the possibility of tax increases.

Kang also said President Lee’s decision to post 11 messages on real estate policy between Jan. 23 and Feb. 2 was intended to demonstrate his commitment to implementing policies in a consistent manner.

The People Power Party strongly objected to the president’s repeated social media messages on real estate policy, accusing him of what it described as “intimidation and scolding economics” and “threat politics directed at the public through social media.” Floor leader Song Eon-seok said at a party leadership meeting that urging the public to sell homes by May 9 amounted to political intimidation. He added that he questioned whether such tactics were learned from U.S. President Donald Trump, who he said has announced tariff hikes unilaterally through social media.


Hoon-Sang Park tigermask@donga.com