Seoul: President Lee Jae Myung on Tuesday issued another stern warning against real estate speculation, as he has continued to show strong resolve to stabilize home prices by vowing to end an exemption from heavy capital gains tax for multiple home-owners. Lee made the remarks during a Cabinet meeting, responding to criticism from some skeptics who argue that the government is seeking to boost the stock market while tightening controls on the housing market.
According to Yonhap News Agency, Lee emphasized that housing prices and stock prices should not be judged on the same footing. He addressed the misconception held by some due to a lack of understanding and condemned those in leadership positions who mislead the public on this matter. While rising stock prices support corporate activities without harming the public, Lee pointed out that surging housing prices can tie up investment capital in real estate, preventing it from flowing into more productive sectors and distorting the social and economic structure.
Lee highlighted that when housing prices soar, those without homes suffer, which undermines fair resource distribution. He also criticized individuals who welcomed the sharp decline in stock prices and skeptics questioning the government's simultaneous efforts to support the stock market and control housing prices.
The benchmark Korea Composite Stock Price Index experienced significant fluctuations, falling over 5 percent to close at 4,949.67 on Monday, before rebounding by more than 5 percent in early trading Tuesday to surpass the 5,000-point mark.
During the meeting, Lee further pledged to expand support for new businesses as part of efforts to shift the economic paradigm toward entrepreneurship. In the era of artificial intelligence, Lee asserted that societies viewing challenges and failure as foundations for success can overcome crises and seize greater opportunities for prosperity. To adapt to changes in the job market driven by the AI-led transition, he suggested that the government should ease regulations on starting new businesses and expand financial support for entrepreneurs with innovative ideas.