Seoul: President Lee Jae Myung stated on Tuesday that the infusion of liquidity into speculative real estate investments has led to housing instability, highlighting the necessity to diversify investment avenues to reduce the heavy reliance on property investments.

According to Yonhap News Agency, Lee emphasized the limitations in investment options that have predominantly been confined to housing or real estate. This has resulted in homes repeatedly becoming vehicles for investment or speculation, consequently causing instability in the housing market. He articulated these views during a Cabinet meeting, pointing to the critical need for expanding investment opportunities to stabilize the housing sector.

Lee further pointed out the significance of sustaining the current momentum in stock and financial markets as a means to broaden individual investment options. "Fortunately, with the recent normalization of the stock and financial markets, alternative investment options are gradually gaining ground," he said, stressing the importance of maintaining this positive trend.

In a related development, the Financial Services Commission announced last Friday that all local lenders would be mandated to significantly reduce their household lending. Additionally, starting this week, mortgage-backed loans for home purchases in the capital area will be capped at 600 million won (US$442,000). This policy move under the Lee administration comes in response to the sharp increase in household debt and the soaring home prices in Seoul.