Lee Jae Myung Proposes Property Tax Overhaul to Curb Speculation

The administration of Lee Jae Myung has proposed a comprehensive property tax overhaul designed to curb speculation and stabilize a housing market marked by relentless price gains. The plan increases holding taxes on high-value homes and investment properties, specifically targeting non-resident homeowners and those owning multiple properties. To maintain affordability for residents, the proposal preserves tax breaks for owner-occupiers of homes valued up to approximately 3 billion won ($2.1 million).

Finance Minister Koo Yun Cheol stated the reform aims to ensure homes are treated as places for living rather than assets for buying. To incentivize the sale of properties before the stricter regime takes full effect in 2028, the government intends to temporarily ease capital-gains tax surcharges.

The proposal has drawn political criticism from critics who argue that the administration's move contradicts presidential real estate pledges. The government is scheduled to submit the tax revision package to the National Assembly before September 3.