On the 24th, President Lee Jae-myung, addressing the normalization of the real estate market, said, "Real estate is close to psychological warfare," adding, "There is no need at all to make political considerations." With the government set to end the temporary suspension of the capital gains tax surcharge on multiple-home owners as of May 9 and also reviewing the reduction and abolition of the special long-term holding deduction for non-residents with one home, the message was that it will push ahead with tough reforms even if it becomes a headwind for voter sentiment in the June 3 local elections.
That morning, presiding over a Cabinet meeting at Cheong Wa Dae, Lee said, "If we leave real estate speculation unchecked, the country will collapse." He added, "When it comes to real estate, there still seem to be people who say 'real estate never loses,' 'how can the government beat the market,' and 'in the end, if political pressure mounts, they will give up, so let's just hold out,'" and said, "Resistance driven by desire is inevitable, but if we cannot overcome it, there is no future for the government or the country."
Lee said, "Each ministry and agency is likely preparing tax, finance, and regulatory measures; prepare strictly and meticulously so there is not even a 0.1% gap for leakage, exclude all possibilities of abuse, and prepare thoroughly," adding, "Where desire and justice have clashed, desire has won until now, and groups holding vested interests and policymaking authority have taken the side of desire." He went on, "A few receive enormous benefits, but the overwhelming majority are made to think they will live miserably, never seeing the inside of a home of their own for life, moving from one rented place to another while bearing enormous housing expense."
In particular, he said, "As real estate prices rise, they become a cause of inflation, and as expense rises on the side of corporations and industry, production costs rise again, competitiveness falls behind, and prices go up," adding, "Please design the system itself to block real estate speculation thoroughly, and ministries and agencies with relevant sanctioning authority must impose sanctions strictly. Whether collusion or manipulation, prepare strictly and thoroughly and enforce sanctions."