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🇰🇷 South Korea /Economy & Trade

Lee Hyung-il once opposed higher taxes on multiple-home owners, now leads tax increases

From Dong-A Ilbo · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

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  • Lee Hyung-il, nominated as deputy prime minister and finance minister, previously opposed punitive taxation on people who own multiple homes.
  • In a 2022 interview, he said higher taxes could pass through to rental markets and increase rents.
  • His earlier comments are drawing scrutiny because he later led a government real estate tax reform plan that raised taxes on multiple-home owners.

Lee Hyung-il, the nominee leading the government’s real estate tax overhaul, once argued that heavier taxation on multiple-home owners could drive up rents. Four years later, his earlier position is emerging as an issue he may have to address at his confirmation hearing.

The previous government imposed very punitive taxation on multiple-home owners to curb speculative demand.

· Lee Hyung-ilHe made the comment in a December 2022 interview while explaining the Yoon Suk Yeol government’s economic policy direction.

In a December 2022 media interview, Lee described the previous Moon Jae-in government’s policy as “very punitive taxation” imposed on multiple-home owners to curb speculative demand. He said the burden could be passed on to the rental housing market and lead to higher rents.

Lee also said the punitive elements of taxation on multiple-home owners should be normalized. At the time, he served as a senior official at the Ministry of Economy and Finance and was explaining the Yoon Suk Yeol government’s 2023 economic policy direction.

Taxation on multiple-home owners is passed through to the rental market and causes rent increases.

· Lee Hyung-ilHe warned that heavier taxation could raise rents.

That policy direction sought to reduce real estate tax burdens that had been strengthened under the Moon government. It included easing heavier acquisition taxes on owners of two homes in designated regulated areas. The contrast with Lee’s current role in steering a plan to increase taxes on multiple-home owners has prompted calls for him to explain how his position changed.

The punitive elements imposed on multiple-home owners should be normalized.

· Lee Hyung-ilHe argued for reversing the previous government’s heavier tax burden.
About this summary

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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