President Lee Jae Myung said that distorted resource allocation caused by excessive concentration on real estate must be corrected to achieve inclusive growth.

The president, in his opening remarks during a Cabinet meeting at the presidential office on Tuesday, said that real estate has recently become a source of controversy.

He warned that excessive expansion in the nonproductive real estate sector will inevitably create a bubble, potentially dealing a serious blow to the national economy.

The president also reiterated that a one-year relief measure that had put the multi-home capital gains tax surcharge on hold is scheduled to end on May 9, and would lapse automatically unless the enforcement decree is revised.

Lee said that once a policy direction is set, the government should not be swayed by minor fluctuations or react emotionally to short-term developments, emphasizing the need to rein in misguided expectations that pursue unfair gains.