Lee rejects calls to extend capital gains tax relief

Jan 27, 2026, 11:15 am

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President Lee Jae-myung speaks during a Cabinet meeting at the presidential office on Jan. 27. / Yonhap

President Lee Jae-myung on Jan. 27 pushed back against criticism over the scheduled end of a temporary suspension of higher capital gains taxes on owners of multiple homes, stressing that the policy will expire on May 9 as planned and should not be swayed by what he called “unjustified attacks.”

Presiding over a Cabinet meeting at the presidential office, Lee said that once a policy decision is made through a rigorous process, its implementation must be predictable in order to build a rational and stable society.

“Wrongful expectations that seek unjust gains must be eliminated,” Lee said. “Because policies have been changed too easily in the past, some believe the government will change them again if enough pressure is applied.”

Lee emphasized that the surcharge on capital gains tax for multiple homeowners was extended last year with a clear condition that it would last only one year and end on May 9 this year. “It was always a scheduled expiration,” he said. “Yet some assumed it would naturally be extended again. When we said it would not be, criticism emerged as if we were newly imposing a heavier tax.”

He added that repeatedly extending tax relief measures in response to pressure undermines policy credibility. “If that is the case, then such measures should be permanently legislated,” he said.

Addressing broader concerns over the housing market, Lee said real estate issues have once again become a source of controversy, underscoring the need to correct distortions in resource allocation that have led to excessive concentration in property.

“To achieve inclusive growth through a fundamental transformation of the economic structure, we must rectify the abnormal concentration of resources in real estate,” he said. “Excessive expansion of unproductive real estate inevitably fuels bubbles, erodes growth potential and can deal a serious blow to the overall economy.”

Lee also warned against repeating the mistakes of neighboring countries that experienced decades of economic stagnation after failing to control property bubbles. “We must take those painful lessons as a warning,” he said, calling for consistent and effective policies grounded in firm resolve.

“Fear of immediate pain or resistance must not lead us to tolerate unfairness or abnormal practices,” Lee said, urging officials to pursue both corrective measures and proactive policies that markets demand.

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