Joori Roh and Cynthia Kim

SEOUL (Reuters] – Lee Jaehong would not have been able to buy a home in Ilsan in the outskirts Seoul, back in 2018. It was possible to get enough credit for an apartment in Seoul that cost $562,000 with a good job and strong credit.

However, the 39-year old held back thinking that there would be greater opportunities in the future. He was shocked by the near threefold rise in property prices since 2017 when President Moon Jaein became president.

The presidential election is scheduled for March 9. Housing will be a key issue. Lee, as well as millions of other people who have not been able to get onto the property ladder, blames the government for its failure to fulfill housing affordability promises.

Lee said, “I would buy anything, if it were possible to go back in the past, to purchase something.” He has been unable to get married and delayed retirement because of financial uncertainties.

“Those who believe they have the power to control (property market) should be removed from office.”

Lee is now a Youtuber and said he’d vote for Yoon Suk-yeol of the opposition party. His policy promises, which include cutting capital gains tax and deregulating rules on knockdown-and rebuild homes, were deemed more market friendly that those made by Lee Jaemyung, Moon’s progressive group.

Lee was far more financially poor than Park Seong-eun’s peers because he decided not to purchase a property.

Park ignored Moon’s policy visions. He bought two apartments in Gwangmyeong west of Seoul when the local rules permitted him to borrow up 70% of the property’s worth.

Park said that a retail manager job in his department is no longer a requirement, despite a net gain of 1.2 billion won ($1,000,000) from his investments.

When I feel bad at work, I consider retiring and living a simpler life. Park stated that the prices of both products have increased by more than 1.1 trillion won.

In order to buy more properties, he plans on voting for someone who can ease the investment rules.

CURBS FAIL

Moon pledged to make South Korea less unequal by reducing what he considered the root cause of South Korea’s economic inequality, which he called real estate speculation.

He also increased capital gains taxes for multiple properties and repeatedly increased loan restrictions, particularly for more expensive apartments. The government began with Seoul by naming more areas of satellite cities as “speculative zones”. They tightened the mortgage rules, raised taxes on property ownership and increased tax rates for those who own expensive properties.

His five-year tenure has seen endless discussions about his policies. Critics say he caused pain to those he was meant to help, and also benefited those who took out debt in order buy homes.

The latest Gallup Korea poll showed that Moon’s approval rating dropped to 43%, from an 84% mark when he assumed office in 2017. His failure to curb real estate speculation is the main reason for disapproval.

In Seoul, the average apartment price has more than doubled over five years, to 1.26 billion won (January), making it much less accessible than other cities such as New York, Tokyo, and Singapore.

Real estate speculation must be stopped. But that’s only one challenge the next leader needs to tackle. The other is sustaining economic growth at rates comparable with the economy after last year’s 4% estimate, which was the fastest expansion since 2010.

Moon’s promises to address major economic problems are still unfulfilled.

After a combined 41.6% rise in the minimum wage and reductions in hours worked, the average number of jobs created by the economy was about 172,000.

Future prospects are brighter for property investors who have already climbed up the ladder.

Jang Sungwon (32), quit his civil service job to start a YouTube channel. He also wrote books after he purchased a home with three bedrooms in 2019. This gave him the confidence that his growing equity would be sufficient to provide for his wife, and child, and to continue his career.

It is impossible to imagine making long-term planning with our second child without this home. It’s hard to do that if you are moving from studio to flat.

“I feel really thankful, and at the same I feel bad about others my age.” To buy a home, they will need more seed money.

($1 = 1,205.2800 won)