The local elections are over, and it has become impossible to deny that real estate prices are rising again.
The National Assembly and executive branch have been notably quiet on real estate policy—almost embarrassingly so, given the President's earlier remark that he would not calculate votes.
Reversing the suspension of the capital gains tax hike alone was never going to be enough. The KOSPI's rally was simply too fast and too large. Loan regulations were not enough either, as bonuses at Samsung and SK Hynix were enormous, and negotiations for similar payouts at other major conglomerates are expected to follow.
For Koreans, equities remain an uncertain and risky investment. Real estate, on the other hand, can be used as a residence, always seems to win in the end, and offers outstanding tax benefits for long-term holders—an unbeatable investment.
Like it or not, the local elections are behind us, and now is the time to actually deliver. The tide has turned back toward real estate.
Even those who had remained cautious about real estate regulation, assuming that policy would be held back because of the local elections, will quickly shift their stance depending on what comes next—perhaps accompanied by the familiar anger of "Were we tricked again?"
For money to move into productive finance as the President intends, real estate taxes must be tightened or equity taxes must be eased—at least to the point where investing in stocks is not tax-disadvantaged.