South Korean Lawmaker Calls for Review of Real Estate Demand Policies

Rep. Lee Eon-ju voiced her frustration following a real estate forum hosted by President Lee Jae-myung, stating she found the discussions "frustrating." The lawmaker believes that current demand-suppressing policies require a comprehensive re-evaluation from the ground up. She suggested that some proposals presented during the forum were out of step with market principles and the principle of administrative reliability.

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While listening, I felt frustrated.

Lee highlighted cases of households struggling with rent and lease difficulties, arguing that housing prices are bound to rise under normal market conditions as long as supply remains insufficient. She questioned whether the current approach of artificially suppressing demand through loan restrictions and regulations inadvertently harms average middle-class and low-income families, while those with financial means are less affected.

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Demand-suppressing policies need to be reviewed from the beginning.

Regarding the proposed increase in property holding taxes, Lee acknowledged the rationale, noting the low effective tax rates. However, she expressed concern that the current regulatory framework, which aims to control demand, is creating undue hardship for ordinary citizens. Lee implied that the government's focus on demand suppression might be misdirected, potentially exacerbating the affordability crisis for many.

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As long as the supply shortage is not resolved, it is normal for housing prices to rise according to market principles.