President Lee ramps up pressure on real estate market

Mar 25, 2026, 09:57 am

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Lee Jae-myung spoke during a Cabinet meeting at the presidential office on March 24, signaling a possible shift in stance on property holding taxes. / Yonhap News

President Lee Jae-myung has signaled a potential shift toward raising property holding taxes, marking the start of what analysts describe as a psychological strategy to curb the long-standing belief that real estate prices will always rise.

Until recently, Lee had taken a cautious stance on property taxation, stating during a New Year press conference that “we will not control housing prices through taxes” and that tax measures should be used only as a last resort. However, early on March 24, he drew attention to property taxes in major global cities, asking, “I’m curious about holding taxes in advanced economies,” signaling a change in tone.

This marks the first time Lee has directly raised the issue of property holding taxes since taking office. Observers interpret the move as a signal that the government is ready to consider tax hikes at any time, aiming to pressure a market heavily influenced by expectations and sentiment.

The strategy appears designed to deter speculation by creating uncertainty among investors. Earlier, on March 22, Lee had already announced that public officials owning multiple homes or high-value non-residential properties would be excluded from real estate policy discussions. The latest remarks suggest the administration is preparing stronger measures, including potential tax increases.

During the Cabinet meeting, Lee stressed, “If we allow real estate speculation to go unchecked, the country will fail. Resistance driven by desire is inevitable, but if we cannot overcome it, this government has no future.”

He also emphasized the psychological nature of the housing market, stating, “Real estate is close to a psychological battle. There is no need for political considerations,” reinforcing the idea that the government may use the possibility of tax hikes as leverage.

Lee instructed ministries to prepare comprehensive measures, saying all potential loopholes must be eliminated “with no room for even 0.1% leakage,” highlighting the administration’s determination to tighten regulations.

The president further amplified the issue by sharing an article on social media comparing property taxes in cities such as New York, London, Tokyo, and Shanghai, adding, “I was curious as well.” The article referenced comments by presidential policy chief Kim Yong-beom, who said the government is studying property tax systems in major global cities.

Despite the apparent shift in tone, the presidential office maintained that property tax hikes remain a last-resort option. Spokesperson Kang Yoo-jung said during a briefing that holding taxes on high-end housing and other real estate assets are still considered “a final measure to be reviewed.”

Nevertheless, the evolving rhetoric suggests the government is increasingly willing to use taxation as part of a broader strategy to stabilize the housing market and combat speculation.

#Lee Jae-myung #property tax #real estate policy #South Korea housing market