President Lee in Singapore Calls Real Estate Speculation a Chronic Problem in South Korea

[The Financial News, Singapore = Reporter Choi Jong-geun]President Lee Jae-myung, currently on a state visit to Singapore, said on the 1st, "As I look at Singapore, I keep thinking that real estate speculation in South Korea is a chronic problem."
During his closing remarks at a meeting with Korean residents held at the Ritz-Carlton hotel in Singapore that day, President Lee responded to comments from some attendees who said they wanted to return to Korea but were worried about housing prices. He said, "Even if you return to your home country, I will make sure you do not have to agonize over housing, so please come back when the time is right."
President Lee went on, "Can we really blame people who bought homes as a means of housing after saving up money? If it makes money, people buy, and if it does not, they will not buy no matter how much you urge them to." He added, "Is that not the principle of capitalism, when we have created a society where buying a house is profitable?" criticizing the current system.
He continued, "The problem does not lie with those who speculated, but with the politicians and the government that created the system. We must never repeat such mistakes," stressing, "The reason the people entrusted state affairs to me is to fix these kinds of abnormal situations."
President Lee said, "These days I often hear from people in various places that many of their worries have eased and that they are beginning to feel some hope, and every time I hear that, I feel relieved." He added, "You are working hard to sustain your lives in this distant foreign land, and I will do my utmost so that you do not have to worry about the situation back home. I will make sure that when you eventually return to Korea, you can live without worrying about housing."

Earlier that day, shortly after arriving in Singapore, President Lee used X (formerly Twitter) to highlight the real estate issue, stating, "Buying and selling homes is a matter of personal freedom, but it is the government that decides whether that results in profit or loss."
President Lee said, "There is no need to pressure politicians to sell or not to buy simply because they own multiple homes or do not live in them," adding, "Nor is there any need to lecture them on a moral duty by saying, 'As high-ranking officials, you should sell first.' In a capitalist society, people buy up houses because it makes money; if it did not, they would not buy no matter how much you pray or beg them to."
He continued, "Because it is profitable, people accumulate houses they will never live in. The problem is not with those who buy or those who refuse to sell, but with the government that designed taxes, finance, and regulations in a way that makes buying profitable," emphasizing, "In the end, the real issue is not the individuals who speculate, but the politicians and the government that created a system which allows speculation."
President Lee wrote, "If, in operating national systems such as taxation, finance, and regulation, we had made real estate speculation impossible—if owning many homes, holding properties one does not live in, or living in ultra-high-priced housing did not generate economic gains but instead imposed burdens commensurate with the side effects—then real estate speculation could not occur." He added, "This government’s efforts to induce the sale of multiple homes or non-residential investment properties are not about demanding a moral duty. It is about giving those who have profited from past government failure and neglect a chance to avoid harm, rather than inflicting unexpected damage on them."
He went on, "This is also the way to reduce social costs. Unlike in the past, from now on we will design taxes, finance, and regulations so that making the same choices as before will result in losses," adding, "And regardless of any unjust resistance or slander, we will implement these policies without wavering, in order to offer a new opportunity for rational choices. Singapore is a country with a small territory and per capita income close to 100,000 dollars, yet its people do not suffer from real estate speculation, nor is national development hindered by it."
President Lee said, "This shows that, if the government has the will, it is entirely possible to curb speculation." He reiterated, "Once again, buying and selling homes is a matter of personal freedom, but it is the government that decides whether that leads to profit or loss," and stressed, "Housing speculation robs young people of hope and ruins the country."
He also stated, "I believe that the sovereign people have given me the responsibility and authority to correct this ruinous speculation. As a faithful public servant of the people, I will, in accordance with their mandate, resolve this nation-wrecking speculation once and for all," adding, "If you do not want to sell, then simply keep your properties. The success of this government, and the path toward a normal society, lies in ensuring that choices made in defiance of, or in distrust of, government policy can never be profitable."
cjk@fnnews.com Reporter Choi Jong-geun Reporter