Housing Costs Push South Korean President to New Low
South Korean President Lee Jae Myung’s approval rating has fallen to its lowest level since he took office as housing emerges as the administration’s most damaging domestic issue. A new poll puts approval at 44% and disapproval at 46%, with real-estate policy cited by 30% of those rating the president negatively. The political pressure is intensifying as home-purchase affordability in Seoul deteriorates, household debt continues to rise and the Bank of Korea tightens monetary policy. The government has responded with a new plan for more than 230,000 additional homes in the capital region, but much of that supply will take years to reach buyers.
Lee Jae Myung’s approval falls to 44%
Lee Jae Myung remains South Korea’s serving president and the country’s 21st head of state, according to the official presidential website.
Gallup Korea surveyed 1,000 adults from August 11 to 13 and found that 44% approved of Lee’s job performance, while 46% disapproved and 10% had no opinion. Approval fell seven percentage points from three weeks earlier, while disapproval increased by eight points. It was the first numerical crossover between positive and negative assessments during his presidency.
Bloomberg’s August 14 report focused on housing costs as a major reason for the decline. The underlying survey strongly supports that framing: real-estate policy was cited by 30% of respondents who disapproved of the president, making it the single most common reason for a negative assessment. The economy and living conditions followed at 13%.
Housing becomes the administration’s biggest domestic risk
The problem goes well beyond short-term movements in apartment prices. Housing in South Korea is closely connected to household wealth, debt, marriage and family formation, geographic mobility and access to the country’s most concentrated labor market.
Gallup found that 33% of respondents would consider the housing market stable if people could live securely in rental accommodation for the long term without needing to buy. Another 30% wanted Seoul apartment prices to fall generally, while 24% defined stability as an absence of sharp price movements in either direction. At the same time, 40% said the government should intervene less in the housing market, compared with 27% who wanted more intervention and 20% who viewed the existing level as appropriate. In Seoul, 52% favored less intervention.
That leaves policymakers facing conflicting demands: voters want greater affordability, but many are skeptical of the taxes and restrictions used to achieve it.
Buying a Seoul home can absorb almost half of income
Housing affordability in the capital has deteriorated sharply. Seoul’s Korea Housing Affordability Index rose to 179.3 in the first quarter of 2026 from 165.1 in the previous quarter, its highest level in more than three years. The nationwide figure was only 61.5.
The index estimates the repayment burden faced by a median-income household buying a median-priced home with a standard mortgage. The Korea Housing Finance Corporation explains that a value of 100 corresponds to the benchmark repayment burden of roughly 25% of household income. On that basis, Seoul’s 179.3 reading implies a modelled mortgage burden of around 45% of income.
The affordability crisis is therefore no longer only about accumulating a down payment. Even households able to obtain a mortgage can face debt servicing costs approaching half of regular income.
The tax overhaul receives a skeptical response
The government unveiled a new real-estate tax package on August 3, including heavier treatment of some expensive and non-owner-occupied homes. Public reaction has so far been more negative than positive.
Gallup found that 45% expect the changes to have a negative impact on the housing market, while 24% expect a positive effect and 12% foresee little impact. The result suggests that concern about high home prices does not automatically translate into support for higher property taxation.
South Korea has repeatedly used taxes, lending restrictions and rules affecting multiple-home owners to restrain speculative demand. The challenge is that Seoul and its surrounding metropolitan area continue to attract intense structural demand because of their concentration of employment, universities and corporate activity.
Government adds more than 230,000 homes
On August 13, the Ministry of Land, Infrastructure and Transport announced an accelerated housing package that aims to provide more than 230,000 additional homes in the greater capital region. The package also includes measures intended to speed supply and improve financing support for younger and end-user buyers.
It comes on top of a September 2025 plan to build about 270,000 homes a year across Seoul, Incheon and Gyeonggi Province from 2026 through 2030, or approximately 1.35 million units over five years.
The central weakness is timing. Land announcements can influence expectations immediately, but planning, infrastructure and construction take years. A large future supply pipeline does little to reduce the mortgage payment faced by a household trying to buy in Seoul today.
Bank of Korea raises rates as housing risks increase
Housing has also become a monetary-policy constraint. On July 16, the Bank of Korea unanimously raised its Base Rate by 25 basis points to 2.75% from 2.50%.
The central bank specifically pointed to faster housing-price increases in Seoul and major parts of Gyeonggi Province, persistent expectations of further gains and rapid household-loan growth. It said the policy stance needs to remain consistent with the possibility of further rate hikes, with the timing determined by inflationary pressure, the economic recovery, exchange-rate movements and financial stability.
That creates a difficult trade-off. Higher rates can cool leveraged property demand, but they also make mortgages more expensive for ordinary buyers and increase debt-service costs for existing homeowners.
Household credit continues to climb
Household borrowing across South Korea’s financial sector increased by about 8.3 trillion won in June after rising by 9.3 trillion won in May.
Housing-backed lending increased by 4.5 trillion won, accelerating from a 4 trillion won gain the previous month. Bank household lending alone expanded by 7.6 trillion won. The Financial Services Commission linked the mortgage increase to housing transactions and group lending associated with new apartment purchases.
The numbers explain why officials are reluctant to use easier credit as a solution to housing affordability. Looser lending standards can improve immediate access to mortgages while simultaneously creating additional demand that pushes property prices higher.
Housing now shapes monetary policy itself
The Bank of Korea says price gains around Seoul have accelerated alongside expectations that housing will continue becoming more expensive. Household debt is also rising fast enough to remain a central financial-stability concern.
That makes the current situation different from a conventional affordability downturn in which the central bank can simply cut rates. Cheaper money could lower monthly mortgage payments while reigniting demand and increasing leverage.
Lee’s administration is therefore increasingly dependent on housing supply, taxation, prudential lending rules and targeted buyer support rather than monetary easing alone.
Young voters show the weakest support
The political consequences are particularly visible among younger Koreans. Only 30% of respondents aged 18 to 29 approved of Lee’s performance, the lowest rate among the main age groups. Approval remains substantially stronger among voters in their 40s and 50s.
For younger households, affordability is about more than headline apartment prices. High down payments and mortgage costs affect financial independence, family formation and the ability to live near the country’s largest employment centers.
South Korea’s jeonse rental system adds another dimension. Under the traditional structure, tenants provide landlords with a large refundable lump-sum deposit instead of paying a high monthly rent. The arrangement can reduce recurring rent costs but requires substantial savings upfront, creating another barrier for younger households.
Lee’s party still holds a wide lead
The president’s record-low approval does not yet amount to a broader political collapse. Lee’s Democratic Party has 41% support, compared with 25% for the opposition People Power Party, while 28% identify with no party.
That suggests dissatisfaction with Lee has not yet translated into an equivalent shift toward the conservative opposition.
Housing nevertheless poses a particularly dangerous political problem because its effects are immediate. Voters may appreciate foreign-policy achievements or strong exports, but mortgage payments, rent and apartment prices affect household budgets every month.
As International Investment experts report, Lee Jae Myung’s fall to 44% approval illustrates how quickly housing affordability in South Korea has shifted from an economic challenge into a major political liability. The government is simultaneously changing taxes, restricting leveraged demand and promising a large expansion in supply, but those tools operate on very different timelines. Lending limits and tax changes affect households immediately, while much of the new housing will not reach the market for years. The key measure of success should therefore be not simply whether headline property-price growth slows, but whether housing becomes genuinely more affordable relative to income. If a standard Seoul mortgage continues to require close to half of a median household’s earnings, announcements of hundreds of thousands of future homes may not restore confidence quickly among younger and middle-income voters.
FAQ: South Korea housing and Lee Jae Myung’s rating
What is Lee Jae Myung’s approval rating?
Gallup Korea’s August 11–13 survey puts presidential approval at 44% and disapproval at 46%, Lee’s lowest approval reading since taking office.
Why has Lee’s approval rating fallen?
Real-estate policy was the most frequently cited reason for disapproval, mentioned by 30% of respondents who rated the president negatively.
How affordable is housing in Seoul?
Seoul’s Housing Affordability Index reached 179.3 in the first quarter, its highest in more than three years. Under the index methodology, that implies a standard mortgage burden of roughly 45% of median household income.
What is the government doing about housing prices?
The administration is combining property-tax changes, lending measures and a major increase in housing supply. Its latest package calls for more than 230,000 additional homes in the capital region.
How much housing is planned around Seoul?
A previous supply program targeted about 1.35 million new homes across the capital region between 2026 and 2030.
What is South Korea’s interest rate?
The Bank of Korea raised its Base Rate to 2.75% from 2.50% on July 16 and has left open the possibility of additional increases.
Why are interest rates connected to the housing market?
The central bank views accelerating Seoul-area home prices and household debt as financial-stability risks alongside inflation.
Is mortgage borrowing still increasing?
Yes. Housing-related lending across the financial system increased by 4.5 trillion won in June, while total household credit rose by 8.3 trillion won.
How popular is Lee among young voters?
Approval among respondents aged 18 to 29 is about 30%, the lowest among the major age groups in the latest Gallup survey.
Does the low rating mean Lee is in a political crisis?
Not yet. His Democratic Party retains a sizeable polling lead, with 41% support compared with 25% for the main opposition People Power Party.