President Lee Jae-myung on the 22nd ordered that public officials who own multiple dwellings or high-priced dwellings not used for residence be excluded from the real estate policy-drafting process. Lee said on X (formerly Twitter) that morning, "I ordered Cheong Wa Dae and the Cabinet to exclude multiple-home owners, owners of non-residential high-priced dwellings, and those who excessively hold real estate from the discussion, drafting, reporting, and approval processes for dwellings and real estate policy." It is an additional step following his move to list his "Bundang apartment" for sale as a sign of his resolve to normalize the real estate market.
Lee said, "Escaping the real estate republic is the core of cores for Korea's grand transformation," adding that "in real estate or dwellings policy, there must not be even a 0.1% defect or loophole," explaining the rationale for his order. Following a notice to end tax benefits for multiple dwellings and one non-residential dwelling, he is saying he will exclude from the policy process any public officials who do not align with the policy stance.
Lee also said, "There is no reason to criticize multiple-home owners, owners of non-residential dwellings for investment or speculation, or ultra-high-priced dwellings themselves. The problem is public officials who crafted tax, finance, and regulatory policies to favor holding more dwellings and to raise 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 also 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 marry, have children, and raise them, don't you think?" He continued, "I believe we must not turn countless people into 'snails without homes' 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 resolve 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 the capital gains tax surcharge for multiple-home owners, which had been extended by revising enforcement decrees under the previous Yoon Suk-yeol administration, and ▲ reduce or abolish the long-term holding special deduction for owners of one dwelling for investment or speculation.
With home prices in Seoul and the greater capital area rising and real estate polarization deepening across regions and classes, there is no need to grant tax benefits for dwellings that are not actually occupied, he said. In this context, on the 27th of last month, Lee listed for sale an apartment in Bundang-gu, Seongnam, Gyeonggi Province, which he had long co-owned with first lady Kim Hea-kyung.