President Lee on luxury homes: 'Must bear social burden... cannot forcibly control prices'

President Lee Jae-myung articulated his stance on high-value housing, stating that while the market should not be forcibly controlled, owners of premium properties must accept a commensurate social responsibility. Speaking at a national real estate policy forum, Lee asserted that the government's role is not to dictate prices but to prevent distortions caused by abnormal supply and demand dynamics.

"Why would we control prices when a particular area has special significance, leading to higher transactions for the same living environment?" Lee questioned. He added, "However, it is necessary to bear a corresponding social burden for that."

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Why would we control prices when a particular area has special significance, leading to higher transactions for the same living environment? However, it is necessary to bear a corresponding social burden for that.

Lee clarified his position against setting arbitrary housing price targets and attempting to manage supply and demand to meet them, likening such an approach to socialist states and deeming it impractical. Instead, he focused on ensuring the market functions healthily. "The point is to prevent prices from being formed incorrectly due to abnormal supply and demand," he explained.

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The point is to prevent prices from being formed incorrectly due to abnormal supply and demand.

He offered an example: "For instance, if someone thinks, 'I must buy an apartment with a view of the Han River regardless of the price, and I'm willing to pay any taxes needed because it won't burden my income situation,' that should be respected."

This perspective suggests a nuanced approach where market forces are acknowledged, but the societal implications of wealth concentration and the potential for housing to become purely an investment vehicle are considered. The emphasis is on balancing individual purchasing power and desires with the broader need for social equity and stable housing markets.

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For instance, if someone thinks, 'I must buy an apartment with a view of the Han River regardless of the price, and I'm willing to pay any taxes needed because it won't burden my income situation,' that should be respected.