South Korean President Lee jae-myung Firm on Property Tax Policy
Published: 2026/01/25 20:40:17
South Korean President Lee Jae-myung has unequivocally stated his management’s intention to avoid extending tax exemptions for multi-homeowners on capital gains from property sales. this decision signals a firm commitment to addressing what he terms the “Republic of speculative real estate profits” and curbing speculative investment in the housing market.
Addressing Real Estate Speculation
President Lee’s statement, made on January 25th, 2026, underscores his administration’s focus on tackling the long-standing issue of real estate speculation in South Korea. The core of the policy revolves around the capital gains tax,which is levied on profits made from the sale of property. Currently, there are provisions in place that offer exemptions or reduced rates for individuals who own multiple properties.The President’s decision means these provisions will not be extended beyond their current expiration date, which is May 9th.
The Rationale Behind the Decision
Lee’s administration believes that extending the tax benefits for multi-homeowners would exacerbate existing inequalities and further fuel speculative investment. The argument centers on the idea that those who own multiple properties have benefited disproportionately from rising real estate values, and continuing to shield their profits from higher taxes would be unfair to those who do not own property. The President framed the issue as a necessary step to move away from a system where wealth is generated primarily through property speculation, advocating for a more equitable economic landscape.
impact on the Housing Market
The decision is expected to have a meaningful impact on the South Korean housing market.Analysts predict that the end of the tax exemption could lead to:
- Increased Tax Revenue: The government anticipates a rise in tax revenue as multi-homeowners are subject to higher capital gains taxes.
- Cooling of the Market: the removal of the incentive could discourage speculative buying, perhaps leading to a stabilization or even a slight cooling of property prices.
- Potential for Increased Sales: Some multi-homeowners may choose to sell properties before the tax exemption expires, potentially increasing supply in the short term.
Broader Economic Context
This policy decision is part of a broader effort by the Lee administration to address economic inequality and promote sustainable growth. The government has also announced plans to increase investment in affordable housing and to strengthen regulations on real estate transactions. These measures are intended to create a more balanced and equitable housing market that benefits all citizens.
Key Takeaways
- President Lee Jae-myung has ruled out extending tax exemptions for multi-homeowners on capital gains.
- The decision aims to curb real estate speculation and address economic inequality.
- Analysts expect the policy to impact tax revenue, property prices, and market activity.
- The move is part of a larger strategy to promote affordable housing and sustainable economic growth.
