Lee’s property war enters risky territory

“If I were to put it in the language of martial arts fiction, I have reached the level of ‘man-dok-bul-chim,’ immune to all poisons.”

That remark, made by Lee Jae-myung in 2018 during his tenure as Gyeonggi governor, comes to mind as he wages what could be described as “real estate politics” through social media, using online platforms as a primary weapon. The term man-dok-bul-chim literally means being impervious to 10,000 kinds of poison, a metaphor for reaching a state in which no toxin can cause fatal harm.

President Lee has recently placed himself at the forefront of what he calls the normalization of “ruinous real estate.” “There is no government that can defeat the market, but there is also no market that can defeat the government,” he said, vowing to dismantle what he describes as a “republic of unearned real estate income.” On May 9, he formally ended the temporary suspension of heavier capital gains taxes for owners of multiple homes, effectively launching an all-out confrontation with them. When critics argued that the move came without warning, Lee rebuked what he described as “low-level vested interest groups” engaged in “unearned income profiteering,” urging them not to miss their “last opportunity.” As the main opposition People Power Party accused him of intimidation and likened the policy to housing rationing, Lee countered that it was time to stop defending “ruinous real estate speculation” and resorting to outdated ideological attacks.

His response reflects what could be described as a man-dok-bul-chim posture. He has characterized criticism as resistance from speculative forces and as attempts to shield destructive speculation, transforming that pushback into political momentum for curbing housing prices. Lee has also signaled his determination to enforce property policy with the same resolve he demonstrated while clearing illegal facilities in mountain valleys as Gyeonggi governor. At the time, he pressed ahead despite what he described as fierce resistance. The message now appears similar: defying the government will not be easy. Supported in part by renters and younger voters, his approval rating has remained steady at around 60 percent.

For now, Lee’s assertive stance appears to be influencing the housing market. With the expiration of tax breaks for multiple-home owners and a planned reduction in capital gains tax benefits for rental housing, apartment listings have increased in Seoul’s affluent Gangnam districts and along the Han River corridor. His “money move” paradigm has also gained traction as the Kospi surpassed 5,500. Supporters expect that Lee, widely regarded as attuned to capital flows and investor psychology, will pursue a course distinct from that of former President Moon Jae-in.

The real contest with what has long been viewed as an impregnable real estate market is only beginning. Even a president who claims immunity to poison cannot wage this battle alone. The presidential office, contrasting the current administration with the Moon government, which acknowledged shortcomings in its housing policy, emphasized that this government can mobilize both legislative and executive authority. With an absolute majority held by the ruling Democratic Party of Korea and an executive branch aligned with the president’s directives, officials argue that a different outcome is possible despite opposition attacks.

Yet while judicial reform bills driven by the Democratic Party of Korea are advancing swiftly, follow-up legislation tied to the Sept. 7 housing supply measures has moved at a noticeably slower pace. On the same day Lee remarked at a Cabinet meeting that “the president alone cannot uproot all problems,” Land, Infrastructure and Transport Minister Kim Yun-duk was seen watching short-form videos on his smartphone during a National Assembly interpellation session.

Ahead of the Lunar New Year holiday, Lee escalated his warning. “If multiple-home owners hold out and prevail, it would mean the government’s policy to curb ruinous real estate speculation has failed,” he said. He instructed aides to ensure that “speculative forces find no cracks through which to wedge themselves.” It may be time to examine whether such cracks exist not only outside the government, but within the ruling party and the administration itself, and to assess internal weaknesses before confronting external ones.


Hoon-Sang Park tigermask@donga.com