President Lee pushes hard line on property

Jan 28, 2026, 09:19 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 has delivered a series of strong messages criticizing unearned income from real estate, stressing that unfair and abnormal market practices must not be allowed to persist.

Over the past three days, Lee posted four times on X (formerly Twitter), firmly reiterating his intention to end the grace period for the heavier capital gains tax on multiple homeowners. He repeated the stance on Tuesday during a Cabinet meeting, saying the government would correct distortions in resource allocation caused by real estate speculation and should not be swayed by what he called “unwarranted attacks.”

Addressing criticism over the planned expiration of the tax grace period on May 9, Lee said, “Once a policy decision is made, the process may be contentious, but execution should lead to a predictable and rational society.” He added that “misguided expectations aimed at pursuing unjust profits must be eliminated.”

Lee rejected growing expectations that the grace period would be extended again, noting that the government had clearly stated last year that the measure would end on May 9 this year. “Yet some act as if an extension is a given, or attack it as though a new tax hike were being imposed,” he said.

“If we intended to keep extending it, we would not have used a sunset clause but enacted permanent legislation,” Lee said, criticizing what he described as a growing tendency to resist the implementation of sunset provisions once they approach expiration.

“After society sets a direction, policies should proceed as scheduled unless there is a clear problem,” he added.

The remarks were widely interpreted as a renewed pledge to block unfair windfall gains from property and rebalance wealth overly concentrated in real estate. They also came amid pushback such as reports of a rush by multiple homeowners in affluent districts to transfer properties through gifts and concerns over tighter supply due to tax burdens.

Lee countered such arguments by saying it was questionable whether holding on to properties would remain advantageous if carrying taxes exceeded capital gains taxes upon sale, adding that policymakers would not “foolishly allow an obvious loophole to persist.”

“Out of fear of short-term pain or resistance, we must never allow unfairness and abnormal practices to continue,” Lee said, while adding that the government would simultaneously pursue proactive measures sought by the market.

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