Oh Se-hoon, the Seoul mayor, said on the 20th that "President Lee Jae-myung signaled an intention to abolish the long-term holding special deduction," adding, "Abolishing the long-term holding special deduction is a clear infringement of people's property rights." He also said to Chong Won-o, the Democratic Party of Korea's Seoul mayoral candidate who is expected to face him in the June 3 local elections, "You must state your position."
On this day, Oh posted an article on social media (SNS) titled "You wrecked the market with regulation, and in the end it's another tax bomb?" and said, "I have already said that under the Democratic Party of Korea, Seoul will become a real estate hell, and among that, I said that a brutal tax bomb would be dropped on single-home owners," making the remarks above.
Oh said, "People who have owned and lived in dwellings for a long time have nothing to do with speculation aimed at short-term gains," adding, "Branding even these people as potential speculative forces and saying you will rip them off with taxes is, in a word, extortion."
He added, "It is usually not easy for a president to foreshadow a de facto tax hike right before an election," saying, "In a word, arrogance and impatience."
Oh argued that the Democratic Party of Korea's real estate measures are causing side effects in the greater Seoul housing market. He said, "Despite rolling out back-to-back reckless regulations and supply plans made of illusions, such as the Oct. 15 plan last year and the Jan. 29 plan this year, far from containing housing prices, the greater Seoul housing market is becoming even more devastated," adding, "From the outskirts of Seoul to the Han River belt, an upward price trend is emerging, and listings for jeonwolse have dried up to the level of a wasteland. On top of that, redevelopment and reconstruction are hobbled by reckless loan limits, causing even the schedule for new supply to be disrupted."
Oh went on to say, "They are likely gripped by anxiety that a judgment of failure in real estate supply is imminent."
Oh also said, "Since they no longer have confidence in containing housing prices, now it's like threatening with taxes to force people to cough up listings," adding, "It is incompetent, irresponsible, and lawless."
He continued, "In about 10 years, overall prices for most goods and services rise. Dwellings are no exception," adding, "As time passes, home prices rise, and taxing that gain is effectively depriving people of the constitutional freedom to choose their residence."
Oh said, "If you have to pay a slew of taxes when selling a home, with what money are you supposed to secure the home you want?" adding, "This is why people are talking about a 'nationwide ban on moving.'"
He added, "On the contrary, only the side effect of listings being locked up will proliferate," saying, "The market freezes. That's why in the United Kingdom, France, Germany, and Australia, if a single household holds one dwelling long term, they do not tax the capital gains."
Oh also said, "President Lee Jae-myung clearly pledged multiple times before the presidential election not to use taxes as a real estate policy tool," adding, "It is a clear lie."
He continued, "The biggest victims of abolishing the long-term holding special deduction are Seoul residents," adding, "At a time when the average apartment price in Seoul exceeds 1.5 billion won, those who secured their own homes long ago will have to shoulder enormous taxes if they try to sell."
Oh also urged candidate Chong Won-o to state a related position. He said, "Does candidate Chong agree with the president's lies and sudden about-face?" adding, "Do you support abolishing the long-term holding special deduction? As a Seoul mayoral candidate, will you turn a blind eye to the massive harm to residents and remain silent before a predatory, extractive administration?"
He then said to candidate Chong, "Do not evade this—state your position clearly."