Lee Jae Myung Invokes Japan's 1990s Crash to Revise Housing Taxes as Seoul Prices Climb 10%
Updated
Updated · CNBC · Jul 24
Lee Jae Myung Invokes Japan's 1990s Crash to Revise Housing Taxes as Seoul Prices Climb 10%
3 articles · Updated · CNBC · Jul 24
Summary
Lee Jae Myung said South Korea must avoid Japan’s “lost decades” as he prepares property-tax revisions aimed at cooling an overheating housing market.
75.8% of Korean household assets were held in real estate at end-March 2025, versus 24.2% in financial assets, underscoring why Lee wants to shift wealth away from housing.
Economists said the Japan comparison overstates the near-term risk because mortgage rules remain tight: Seoul loan-to-value ratios have fallen from as high as 80% to below 40%.
90.14% household debt-to-GDP still leaves Korea exposed to higher rates and shocks, but analysts noted Seoul home prices are only about 10% above January 2022 levels while Busan has fallen to roughly 80%.