Seoul Mayor Oh Se-hoon on the 21st said, "Abolishing the special long-term holding deduction means half of (one's assets) disappear when selling a home," adding, "I asked candidate Chong Won-o to state a position, but there has been silence."
Appearing on KBS radio's "Jeonggyeoksisa" on the morning of the same day, Oh said, "President Lee Jae-myung wrote on social media that he would abolish the special long-term holding deduction, and Seoul residents are on high alert."
Under Article 95 of the Income Tax Act, when selling real estate such as an apartment held for at least three years and occupied for at least two years, the system deducts a certain percentage of capital gains based on the holding and occupancy periods to reduce capital gains tax. For single-home owners, up to 80% can be deducted.
Earlier, on the 18th, the president effectively formalized the plan to abolish the special long-term holding deduction through social media platform X (formerly Twitter). The president wrote, "We will abolish the deduction, but defer implementation for six months, abolish half for the next six months, and abolish it entirely after one year. If we make it beneficial for those who sell quickly, it will induce listings rather than lock them up."
Regarding the abolition, Oh said, "It's like being robbed while moving," adding, "The capital gains tax is 45%, and the system reduces taxes based on holding and occupancy periods, but they are saying they will eliminate that."
He continued, "The median home price in Seoul is 1.2 billion won, and in relation to this tax law provision, Seoul residents lose more than half their assets if they move," adding, "When moving, they cannot move to a home of a similar price."
Oh also said, "If you are a candidate for Seoul mayor, you should state your position," adding, "I am asking candidate Chong Won-o to state a position, but there has been silence."
Regarding the Democratic Party of Korea saying there had been no discussion about abolishing the deduction, Oh said, "I don't believe it," adding, "No one knows what will happen after the election. That's why residents are anxious."
He added, "I told candidate Chong Won-o yesterday to state a position within the day and waited, but I think it is highly likely that there will be no statement even after today," adding, "At times like this, we should not stay still."