Lee cites concerns S. Korea may be heading for real estate bubble like Japan's

Speaking at a televised public discussion on real estate policy, Lee highlighted a broad consensus on the need to strengthen property holding taxes. However, he acknowledged that the key challenge lies in determining the extent of these increases, suggesting that tripling rates to match advanced countries would be politically unfeasible and require compromise.

The government is reportedly planning to announce revisions to property holding taxes as early as late July to cool demand and rein in escalating home prices. The policy is expected to increase the tax burden on owners of high-value homes or multiple properties, distinguishing between homes for owner-occupation and those acquired for asset accumulation.

Lee clarified that his administration does not intend to artificially suppress home prices, but rather to "normalize" the market by preventing abnormal supply and demand dynamics from distorting prices. He also pointed to South Korea's exceptionally high level of real estate investment as a contributing factor to market concerns.