President Lee Jae-myung on the 22nd ordered the exclusion of public officials who own multiple dwellings or high-priced dwellings not used for residence from the process of drafting real estate policy. Lee said on X (formerly Twitter) on the morning of the same day, "I have instructed Cheong Wa Dae and the Cabinet to exclude multiple-home owners, owners of high-priced non-residential dwellings, and those who excessively hold real estate from the discussion, drafting, reporting, and approval stages of dwellings and real estate policy." It is an additional step following the decision to put the "Bundang apartment" up for sale to signal a commitment to normalize the real estate market.
Lee explained the order by saying, "Escaping the real estate republic is a core task among core tasks for Korea's great transformation," and "because there must not be even a 0.1% defect or loophole in real estate or dwellings policy." Following his notice to end tax benefits for multiple dwellings and non-residential single dwellings, he said he would exclude from the policy process any public officials who do not align with the policy direction.
Lee also said, "There is no reason to criticize multiple-home owners, holders of non-residential dwellings for investment or speculation, or ultra-high-priced dwellings themselves. The problem is the public officials who made tax, financial, and regulatory policies that favor owning more dwellings and push up home prices," adding, "If a public official who created or neglected such systems goes so far as to exploit those flawed systems for speculation, that person deserves not only criticism but sanctions."
Lee said, "Stabilizing real estate, especially dwelling prices, will determine the success or failure of this administration and the fate of Korea," adding, "You need a home to run a household and to get married and have and raise children, don't you think?" He continued, "I believe we must not turn countless people into 'homeless snails' for the profit of a few," and asked, "What are your thoughts?"
◇ Ending the deferral of capital gains tax for multiple homes and revising the long-term holding deduction
A Cheong Wa Dae official said the move applies Lee's strong will to normalize the real estate market across the entire policy-drafting process. Earlier, Lee said on X last month that he would ▲ end on May 9 the deferral of heavier capital gains taxation on multiple-home owners that had been extended through enforcement-decree revisions under the previous Yoon Suk-yeol administration, and ▲ reduce or abolish the special long-term holding deduction for owners of a single dwelling held for investment or speculation.
With rising home prices in Seoul and the greater metropolitan area deepening real estate polarization across regions and classes, the view is that there is no need to grant tax benefits to dwellings not actually occupied. In this regard, on the 27th of last month, Lee put up for sale an apartment in Bundang-gu, Seongnam, Gyeonggi Province, which he had long held under joint ownership with first lady Kim Hea-kyung.