▲ Visitors to Lotte World Tower in southern Seoul view apartment complexes on Aug. 13, 2026. (Yonhap)
▲ President Lee Jae Myung speaks during a meeting with senior aides at Cheong Wa Dae in Seoul on Aug. 13, 2026. (Yonhap)
▲ Land Minister Kim Yun-duk (2nd from L) announces a comprehensive package on stabilizing the housing market during a joint briefing with the Financial Services Commission at the government complex in downtown Seoul on Aug. 13, 2026. (Yonhap)

By Kim Eun-jung

SEOUL, Aug. 13 (Yonhap) -- The Lee Jae Myung administration is putting greater emphasis on housing supply as the red-hot property market in the wider Seoul area exposes the limits of taxes, tight lending rules and other measures aimed at curbing speculative demand, adding to public discontent over its real estate policy.

The government said Thursday it will push to supply more than 230,000 additional homes in the Seoul metropolitan area, including about 100,000 units on newly designated housing sites. The package comes on top of a previously announced goal to start construction on 1.35 million homes in the region by 2030.

The measures follow a property tax overhaul proposal unveiled last week, aimed at imposing heavier tax burdens on owners of expensive homes and investment properties, underscoring the administration's two-track approach of curbing demand while expanding supply.

The latest announcement comes as the government faces growing pressure to show that repeated supply pledges will translate into affordable homes in the Seoul metropolitan area, which account for slightly more than half of South Korea's 51 million population, rather than remain headline targets.

"The government will do its utmost to ensure a timely and sufficient supply of homes in areas where people want to live," Land Minister Kim Yun-duk said, pledging to accelerate public projects while supporting private-sector development.

Housing affordability has become an increasingly sensitive political issue, particularly among people in their 20s and 30s, as high home prices and tighter borrowing rules make home ownership increasingly difficult.

According to the Korea Real Estate Board, Seoul apartment prices rose 11.9 percent in the first year following Lee's inauguration in May 2025, compared with a 4 percent increase nationwide.

The continued rise in home prices has become a political burden for Lee, who has repeatedly pledged to stabilize the housing market, linking housing affordability to broader social challenges, such as the country's low birth rate.

Following Thursday's announcement, Lee called on the government to mobilize "all available means and resources" to tackle soaring housing prices, likening the real estate problem to a "ticking time bomb" threatening people's livelihoods and the country's future.

"An effective combination of bold and rapid housing supply, a fair and reasonable tax system, and carefully tailored and robust financial policies is essential," Lee said during a meeting with senior aides.

Lee's approval rating has recently fallen below 50 percent in some polls, hovering near record-low levels for his presidency, with public discontent over real estate policy among the factors weighing on his support.

Still, the government faces a challenge that has frustrated previous administrations.

Demand restrictions can take effect relatively quickly, while new housing can take years to materialize, moving from site designation and regulatory approvals to construction and eventual moving in.

The land minister acknowledged that reality at a parliamentary hearing Tuesday, saying homes cannot be produced overnight "like bread."

The remark carried particular political resonance, echoing a similar comment by former Land Minister Kim Hyun-mee under the Moon Jae-in administration from 2017-2022. Her "bread" analogy later became symbolic of criticism that the Moon government had underestimated housing shortages while relying heavily on taxes and demand controls.

Amid the pressure to come up with solutions to the housing crunch, some unconventional ideas have also emerged, only to trigger public backlash.

Hwang Hee, a three-term lawmaker from the ruling Democratic Party, last week suggested converting decommissioned buses into temporary housing for university students and other young people in Seoul, prompting a wave of "bus house" memes online.

Although Hwang apologized and said the proposal was his personal idea, it drew angry responses from younger Koreans who saw it as emblematic of a widening generational divide.

"Older generations bought apartments with borrowed money and benefited from rising property values, while younger people struggling to afford homes are now offered converted buses," said Moon Ji-na, a 38-year-old office worker in Seoul. "Who would want to marry and raise children in a bus house? Young people want decent, affordable homes, not just any place to live."

Against that backdrop, Thursday's package seeks to accelerate public housing projects, develop underutilized public land, ease some greenbelt restrictions and support private-sector construction.

The focus on private development could prove particularly important, as private developers account for more than 80 percent of housing supply in the capital area. The package also includes measures to ease bottlenecks in redevelopment and reconstruction, expand financing support and boost non-apartment housing construction.

"What matters most is building market confidence," Kim said. "There may be skepticism over whether the government will actually carry out all of its plans, but many projects are already under preparation, and I believe their implementation will significantly help stabilize the housing market."

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