South Korea’s president sells his only home due to housing crisis

South Korean President Lee Jae-myung sold his only home for 2.9 billion won ($1.96 million), in a move aimed at demonstrating his commitment to efforts to curb real estate speculation, South Korea’s Yonhap News Agency reported.

Yonhap said yesterday, Monday, that the 164-square-meter apartment, located in Seongnam – an upscale suburb of the capital, Seoul, in the south – was for sale for five months before the deal was completed.

The presidential office explained that the price of the property, which Lee and his wife bought in 1998, was less than its current market value.

“As a single-house owner, Lee is not obligated to sell, but he took this step to show his commitment to achieving the real estate market reform policy,” Yonhap quoted the presidential office as saying.

The rapid increase in real estate prices and rents is a major problem in South Korea, where successive governments have tried, largely unsuccessfully, to maintain reasonable housing prices and curb speculators.

Real estate prices in Seoul are among the highest in the world, with the average value of apartments nearly doubling over the past five years alone.

Meanwhile, President Lee said earlier Tuesday that the government will adopt a set of various measures regarding supply and demand, with the aim of stabilizing the real estate market and rooting out speculation.

He explained to me, during a Cabinet meeting, that the huge profits from real estate, which are made through violations and exploitation of legal loopholes, have become the “main reason” for undermining justice and common sense, and destabilizing national unity.

The president also held the real estate market responsible for the worsening wealth disparity, household debt, and the suffering and social isolation of young people.

President Lee said that the government will accelerate the implementation of supply support measures, put in place comprehensive measures to support those who are truly in need of housing, and review the property tax system in a fair and reasonable manner in line with the people’s aspirations.

The President also reviewed the real estate policy discussion, the day after tomorrow, Thursday, which he intends to lead himself, saying that he will listen carefully to the opinions of the public and develop implementable measures.