Winners and losers after one year of the Lee Jae Myung government (KOR)
South Korea’s Kospi index nearly tripled under President Lee Jae Myung’s first year, boosting stock investors while widening inequality, as margin loans and speculative activity surged. Meanwhile, Seoul’s housing prices climbed sharply despite government stabilization efforts, with rental availability dropping over 30% and *jeonse* deposits hitting record increases.
President Lee Jae Myung’s administration has seen the South Korean stock market surge, with the Kospi index rising from 2,698 points at his inauguration to nearly triple that value. Individual investors earned 429 trillion won in 2025 alone, while margin loans for stock purchases hit a record 36 trillion won, signaling speculative excess. The wealth gap has widened, as the top 20% of households hold 73% of all stocks, leaving many low-income earners excluded from gains. Housing prices in Seoul and surrounding areas have also skyrocketed, with many properties increasing in value by 500 million to 1 billion won over the past year. Despite government measures, including resumed capital gains taxes on multiple-home owners, apartment prices continued rising after the tax announcement. The Bank of Korea found that 70% of stock profits from non-homeowners were reinvested into real estate, reversing initial predictions that capital would shift from property to equities. The rental market has worsened, with *jeonse* (lump-sum deposit) and monthly rental listings dropping over 30% this year, pushing prices to decade-high increases. Some renters are securing contracts without viewing properties, exacerbating affordability crises. Deputy Prime Minister Koo Yun-cheol recently called the market undervalued, drawing criticism for prioritizing growth over stability warnings. Critics argue the government’s focus on stock market optimism has overlooked risks, including debt-financed investing and inequality. Lee’s remark that returning to stocks was a ‘sign of intelligence’ has alienated those unable or unwilling to participate. Meanwhile, housing affordability remains a pressing issue, with property ownership still dominating public financial priorities.
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