Lee Jae-myung criticizes tax breaks for long-term home ownership

Apr 24, 2026, 12:12 pm

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South Korean President Lee Jae-myung speaks at the Korea-Vietnam Business Forum held at a hotel in Hanoi on April 23. / Yonhap News

Lee Jae-myung, President of South Korea, on Friday criticized tax reductions for long-term home ownership, calling them a policy that encourages real estate speculation rather than protecting housing.

In a post on X, Lee wrote, “Tax reductions on capital gains based solely on long holding periods—especially for high-priced homes that are not owner-occupied—are not a housing protection policy but a ‘policy that encourages housing speculation.’”

He added, “There are taxes where there is income. Just as earned income is taxed, it is natural to impose capital gains tax on housing transactions.”

Lee shared a related article highlighting market confusion over a proposal to abolish long-term holding tax deductions.

He questioned, “Who are the people that have fueled speculative demand by promoting the purchase of a single high-value home, particularly in Seoul’s Gangnam area, driving a chain reaction of soaring housing prices? And who is defending them?”

He continued, “Is normalizing an abnormal system—where tax cuts are granted simply for holding investment properties for a long time without living in them—being labeled a ‘tax bomb’?”

Lee also suggested policy direction, saying, “To properly protect homeowners, it would be appropriate to reduce tax benefits for non-residential holding periods and instead increase benefits tied to actual occupancy.”

He further criticized what he described as renewed activity by pro-speculation forces, noting that “some opposition parties are distorting a bill related to limiting long-term holding deductions as if it were proposed by the government.”

Emphasizing broader goals, Lee said, “Normalizing abnormal practices and escaping real estate speculation is a final survival strategy for this country. Stable housing prices are essential for people to build homes, get married, and raise children.”

He concluded by inviting public opinion, asking citizens to share their thoughts in comments.

#Lee Jae-myung #capital gains tax #housing policy #real estate #property speculation