South Korea’s AI property boom puts pressure on president

September 8, 2026 - 03:27

Skyrocketing real estate prices in Seoul are turning into a major headache for President Lee Jae Myung, with younger voters growing increasingly frustrated over their inability to buy a home. The latest surge is being driven by a wave of speculative buying linked to artificial intelligence companies, which are snapping up office space and industrial sites in and around the capital. This has pushed apartment prices in some districts to record levels, far outpacing wage growth.

The timing could not be worse for Lee, who campaigned on promises to stabilize housing and narrow the wealth gap. Critics say his administration has been slow to respond, and the opposition is using the crisis to paint him as out of touch with ordinary citizens. For many in their twenties and thirties, the dream of homeownership is slipping further away, and their anger is spilling into street protests and online forums.

Analysts note that the AI boom is creating a two-track economy, where tech hubs and their surrounding neighborhoods thrive while other regions stagnate. This uneven development is fueling resentment, especially among those who feel left behind. The president has announced new measures to cool the market, including higher taxes on multiple home owners and faster permits for new construction, but experts doubt these steps will have an immediate effect.

With local elections approaching, the housing issue is likely to dominate the political agenda. Lee's approval rating has already dipped, and his advisors are reportedly urging him to take more drastic action. But any move to curb the market risks angering investors and developers, who have deep pockets and strong political ties. For now, the president is walking a tightrope, trying to calm public anger without triggering an economic downturn.