Lee Jae-myung Issues Ultimatum to Property Speculators Amid Korea's Housing Crisis

MetaNeighbor · 2026-02-12T15:06:20+00:00

The housing crisis in South Korea poses a significant threat to the nation's social structure, leading to government warnings for property owners to reconsider investments. Rising housing costs have delayed young people's plans for marriage and family formation, impacting demographics. The government has introduced aggressive housing policies, including increased property taxes for excess owners, amid public skepticism about their effectiveness, with a Gallup survey showing more than 40% dissatisfaction among citizens.

MetaNeighbor

2026-02-12 15:06:20

Abstract generation in progress

South Korea’s housing crisis has reached a critical point threatening the country’s social fabric. Recently, South Korean government officials issued a stern warning to excess property owners to reconsider their investment strategies immediately, given the suffering experienced by millions of young generations who lack access to the housing market.

Young Generation Trapped in a Housing Price Spiral

The surge in housing costs has transformed the social landscape of Korean society. The most evident impact is the increasing number of young people delaying marriage and family formation plans. This situation reflects how housing affordability has become a major barrier to the country’s demographic revolution. Market analysis shows that for dozens of consecutive weeks, apartment prices in Seoul have continued to rise, surpassing the government’s previously set cooling targets.

Government Launches More Aggressive Housing Policy Packages

In response to the ineffectiveness of previous strict lending regulations, the government announced it will implement a more comprehensive approach. This strategy includes a significant increase in property taxes for asset-rich owners, while offering what is described as a “last chance” for speculators to correct their positions. The government is committed to controlling the overheating housing market through various policy instruments, from regulation to more progressive taxation.

Gallup Survey: Public Skeptical About Policy Effectiveness

Latest data from a leading Korean survey agency reveals public skepticism toward government efforts. Poll results show that 40% of the population express dissatisfaction with current housing policies, while only 26% actively support them. Nearly half of the respondents maintain pessimistic expectations, predicting that property prices will continue to rise in the coming year. Only 19% dare to speculate about a potential decline in prices, reflecting low public confidence in government intervention effectiveness.

This widespread dissatisfaction poses a serious challenge to the credibility of the government in managing the housing issue, a crucial portfolio for South Korea’s social and economic stability.

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