President Lee Jae-myung, the leader of South Korea, has warned of the risks from the country's overheated real estate market, citing Japan's early 1990s property crisis as a cautionary tale, and is preparing to adjust tax measures to stabilize the housing market. The warning came during a real estate policy discussion on Thursday, July 23, noting that many people are concerned South Korea could face a prolonged economic slump similar to Japan's lost decades after its real estate and stock market bubbles burst, dragging down the economy. President Lee pointed out that Japan's property market at that time burst like a balloon after asset prices surged rapidly, and South Korea must urgently address the risks from its heated housing market. Data as of the end of March 2025 shows that housing and land assets account for 75.8% of total household assets, while financial assets stand at 24.2%, reflecting that public wealth remains heavily concentrated in real estate. The government has been trying to encourage people to diversify wealth from the overheated housing market into the capital markets, but this approach has only seen partial results so far.