DistantNews
Support us
🇰🇷 South Korea /Elections & Politics

President Lee Jae-myung Signals Stronger, Differentiated Property Taxes

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • President Lee Jae-myung indicated a willingness to strengthen property holding taxes, suggesting a differentiated approach based on ownership.
  • He proposed that those owning multiple homes for investment purposes should face higher taxes than those who own a primary residence.
  • The president also emphasized the need to tighten regulations on jeonse (lump-sum rental deposit) loans, calling them a major driver of housing price surges.

President Lee Jae-myung signaled a significant shift in housing policy, expressing a strong inclination to enhance property holding taxes with a differentiated system. "There is general agreement that holding taxes need to be strengthened," Lee stated during a national forum on real estate policy, emphasizing that the key lies in "the scope and degree of strengthening, and what kind of differentiation to apply."

There is general agreement that holding taxes need to be strengthened. The key lies in the scope and degree of strengthening, and what kind of differentiation to apply.

— President Lee Jae-myungDiscussing potential reforms to property holding taxes.

Lee articulated that individuals holding multiple properties for investment should bear a greater tax burden compared to those who own a single home for personal use. "It seems necessary to respect those who live in expensive houses and pay high taxes, rather than alienating them," he remarked. "Naturally, there should be differentiation between those who genuinely own a home for living and those who own multiple homes for profit."

The president also addressed the issue of housing price inflation, identifying jeonse loans, a system where tenants pay a large lump-sum deposit, as a primary culprit. "Jeonse loans are almost unlimited, which drives up housing prices. It seems it's time to adjust them," Lee asserted, indicating a move towards stricter regulations on these loans.

Naturally, there should be differentiation between those who genuinely own a home for living and those who own multiple homes for profit.

— President Lee Jae-myungExplaining the rationale for a differentiated property tax system.

Furthermore, Lee touched upon potential "marriage penalties" in housing applications, where married couples might face disadvantages. He assured that a thorough investigation would be conducted to ensure fairness. The administration is planning to announce specific real estate tax reforms and loan regulations by the end of the month or early next month, following public consultations.

Jeonse loans are almost unlimited, which drives up housing prices. It seems it's time to adjust them.

— President Lee Jae-myungIdentifying jeonse loans as a major factor in housing price inflation.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog