(ATTN: UPDATES with Lee's remarks on gas prices, stock market)

SEOUL, July 21 (Yonhap) -- President Lee Jae Myung said Tuesday the government will adopt various measures on both the supply and demand sides to stabilize the property market and root out speculative behavior.

Lee said at a Cabinet meeting that windfall profits from real estate, helped by illegalities and exploiting legal loopholes, have become the "biggest culprit" in destroying fairness and common sense and undermining national unity.

He also blamed the property market for exacerbating wealth inequality, household debts, and young people's pain and isolation.

President Lee Jae Myung speaks at a Cabinet meeting at Cheong Wa Dae in Seoul on July 21, 2026. (Yonhap)

"Only when the real estate problem is normalized can resources be reinvested productively and social dynamism be restored," he told the televised meeting at Cheong Wa Dae. "Then can we find a path toward resolving conflicts caused by polarization."

The government will swiftly roll out supply-side measures, draw up comprehensive measures to support people genuinely in need of a home, and revise the property tax system in a way that is fair and rational and in line with people's expectations, Lee said.

He also previewed Thursday's real estate policy debate, which he plans to lead himself, saying he will listen carefully to the voices of the public and devise achievable measures.

Lee used the Cabinet meeting to urge all-out efforts to protect people from the ongoing monsoon rains and the severe heat waves that are expected to follow.

Citing data that the damage recovery rate following last year's monsoon season came to 93.7 percent before the start of this year's season, he thanked each ministry and local government for their work, noting it was the highest figure in the last 10 years.

On gasoline prices, which have been subject to government-imposed price ceilings since March following the outbreak of the U.S.-Israeli war against Iran, Lee said they may need to be raised again in light of renewed tensions in the Middle East.

"Under our original plan, (the maximum price) should have been lowered further or scrapped by now, but it looks like we will have to strengthen it instead," he said. "The situation in the Middle East is deteriorating again and there is no clear sign of an early end or pause to the war."

The price of regular gasoline supplied to gas stations by local oil refineries is currently capped at 1,784 won (US$1.21) per liter, after it was lowered by 150 won on June 27.

Lee doubled down on his call for thorough and swift measures regarding recently introduced single-stock leveraged exchange-traded funds (ETFs), which have been blamed for heightened volatility in the stock market.

The products track the daily performance of two market heavyweights -- Samsung Electronics Co. and SK hynix Inc. -- which account for roughly half of the Korea Composite Stock Price Index's (KOSPI) total market capitalization.

Lee said some have questioned the sufficiency of recent measures unveiled by the Financial Services Commission to better protect investors, such as the temporary suspension of the listing of new ETFs tracking the two companies and a toughened minimum deposit requirement for a single-stock leveraged ETF.

"Swiftly take the necessary response measures boldly," he instructed the government.

hague@yna.co.kr
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