President Lee Jae Myung speaks during a televised public forum on real estate policy at KBS in Yeouido, Seoul, Thursday. (Yonhap) President Lee Jae Myung warned Thursday that South Korea could be approaching a real estate tipping point that could bring about “20 or 30 lost years” to the economy.While presiding over a public forum on housing policy direction, Lee said he was prepared to bear the criticism, conflict and resistance that could accompany real estate policy reforms, including changes to property taxes.Lee noted that real estate accounts for the largest share of South Korean household assets, with both property prices and the proportion of wealth tied up in real estate ranking among the highest in the world.Lee pointed to Japan as a cautionary example, saying that limited land and the concentration of population and demand in particular areas had fueled a prolonged rise in property prices.“Japan once went through a difficult period. Prices continued to rise until they eventually reached a certain limit, and then the so-called bubble burst,” Lee said during the forum. “That is why people began talking about Japan’s ‘lost 20 years’ or ‘lost 30 years.’”Lee said there were growing concerns that South Korea could be heading toward a similar tipping point.“Quite a few people worry that we, too, may be racing toward that peak,” Lee said. “There is broad public agreement that some form of action is necessary. That is what makes this issue so difficult.”Lee traced the problem in part to a shift in the role of housing from a basic necessity into a vehicle for accumulating wealth.“A home should be a physical space where a family can live comfortably and one that is reasonably accessible,” Lee said. “But at some point, it seems to have become not only a place to live but also a means of making money.”Lee acknowledged that housing could serve as an investment but said the central question was how much weight should be placed on that function relative to its role as a home.Lee said he would “bear responsibility commensurate with the authority exercised” as he pushes ahead with housing policy reforms.“I have always believed that the greatest virtue of a public official is taking responsibility. There are times when one must endure criticism, as well as a certain degree of conflict and resistance,” Lee said. “But before that, we need to gather as many views as possible and work to reconcile them,” he added.The government is expected to finalize a broader real estate policy package later this month or in early August, covering property holding and capital gains taxes as well as housing finance regulations. Thursday’s forum was organized to publicly examine contentious policy options and assess their potential effects and unintended consequences before final decisions are made.During the forum, Lee said the government was facing a statutory deadline for submitting proposed tax revisions and suggested that Prime Minister Han Sung-sook hold an additional round of discussions if Thursday’s forum failed to sufficiently address the issues.“We are somewhat pressed for time because proposed tax revisions must be submitted by a statutory deadline,” Lee said, a day before departing on an 11-day trip to San Francisco and Latin America. “If today’s discussion proves insufficient, I hope the prime minister will hold another round of talks.”Lee emphasized that the forum was intended to solicit public views, rather than unveil a finalized policy package.“This is not an occasion to announce any particular policy,” Lee said, adding that the government wanted to hear what citizens thought.The forum brought together government officials, real estate experts and members of the public to discuss housing supply, mortgage financing and property taxation.