Real Estate and Prosecution-Cancellation Controversies Could Limit Lee Jae-myung’s Cabinet Reshuffle Gains

President Lee Jae-myung has reshuffled six ministries in an effort to renew his administration, but the move faces immediate limits from falling approval ratings, worsening real estate sentiment and controversy over prosecution cancellations involving the president.

A Realmeter poll commissioned by Energy Economy News found that 38.9% of respondents approved of Lee’s job performance, down 1.3 percentage points from the previous week, while 58.7% disapproved. A separate Korea Gallup poll put approval at 42% and disapproval at 50%. Both figures marked the lowest levels recorded since Lee took office.

“

The president’s direct messaging on real estate policy is facing a strong negative mood even within the presidential office.

Respondents in both surveys cited home prices, instability in the rental market, economic and livelihood concerns, and distrust of the police among the main reasons for negative assessments. Against that backdrop, Lee replaced ministers at the finance, land, justice, defense, small business and gender equality ministries.

“

The drop in approval ratings reflects the overlap of the prosecution-cancellation and real estate issues, as well as the question of police investigative credibility.

The changes at the finance and land ministries have been read as a response to criticism of proposed real estate tax reforms and housing supply measures. Yet both replacement nominees, Lee Hyung-il for finance and Hong Ji-seok for land, are career officials who previously served as vice ministers. Their nominations point to policy continuity rather than a sharp change, leaving uncertainty over whether they will satisfy demands for a new approach to housing policy.

The first test will be the tax reform package, which the cabinet is due to deliberate and approve on Sept. 1 before the government submits it to parliament on Sept. 3. Lee has also put himself directly at the center of the housing debate, saying the government would defeat what he called “ruinous real estate speculation” by any means necessary and ordering preparations to buy homes below a set price for public housing if prices plunge.

“

Because centrist voters are interested in softer issues such as the economy, real estate and everyday safety rather than political issues, how the government responds in these areas will be key to an approval-rating rebound.

Another political risk comes from the nomination of Kim Seung-won as justice minister. Kim has argued for canceling prosecutions in cases involving Lee and co-chairs a lawmakers’ group formed to pursue that goal. The opposition People Power Party has branded the reshuffle a move to cancel trials. The nomination of Yong Hye-in as gender equality minister could also affect younger voters, after the opposition criticized her past participation in proportional-representation satellite parties as a fairness issue. Polling analysts said a recovery will depend on tangible results in the economy, housing and everyday safety, particularly among centrist voters.

“

Everyone knows that President Lee is not ideologically driven and is pragmatic. If results emerge in people’s livelihoods, his approval rating will rebound.