South Korea has increased its household debt cap while pledging more homes to curb a relentless housing rally. The government plans to provide 230,000 homes in the capital area, including 100,000 units on newly designated sites, as part of a broader strategy.

This move comes on top of an existing goal to break ground on 1.35 million homes between 2026 and 2030, underscoring the scale of the supply push. By targeting the Greater Seoul area, authorities aim to temper price pressures that have become a political liability.

President Lee Jae Myung faces growing discontent as the housing market’s volatility threatens his administration’s popularity. The debt cap lift seeks to ease borrowing costs, but critics argue that it may inflate speculation if not paired with robust supply.

Overall, the policy shift signals a concerted effort to balance affordability with market stability, while the political calculus remains tight as the government navigates public expectations and economic realities.