President Lee Jae-myung: "Capital Gains Tax of Only a Few Hundred Million Won on 10 Billion Won Real Estate Profit Lacks Equity"

President Lee Jae-myung said today (the 4th), "While earned income tax can reach up to 49.5% when various additions are factored in, real estate capital gains of around 10 billion won result in only a few hundred million won in taxes."

Presiding over a Cabinet meeting at the presidential office today, President Lee made the remarks, stating, "If someone happened to gain that wealth purely by chance through living there, cutting taxes might be right, but if someone buys property for investment and earns billions of won while paying almost no tax, it is completely unfair compared to the earned income of workers."

Regarding the current capital gains tax, President Lee emphasized, "It also does not align with the purpose of protecting housing. It protects real estate investment and speculation," adding, "Many people share the view that such policies certainly need to be adjusted."

He also stressed, "Talking to citizens about taxes is difficult for the government. It is not a popular thing to do," but noted, "However, if the tax system is not normalized, equity issues arise."

This is interpreted as an explanation and a request for understanding regarding the inevitable background behind the significantly heavier comprehensive real estate tax and capital gains tax burdens on high-priced homes and non-resident single-home owners, following the real estate tax reform plan announced by the government the previous day.

Regarding the temporary easing of heavy capital gains taxes on multiple homeowners in regulated zones as an opportunity presented by the real estate tax reform, President Lee emphasized, "There were criticisms asking why the heavy taxation grace period is effectively being extended again and pointing to a lack of policy consistency, but that is not true."

He explained that the measure does not completely abolish heavy taxation, but rather temporarily lowers it and gradually raises it to open a "path of exit" for multiple homeowners.

In the process, President Lee asked Deputy Prime Minister and Minister of Finance and Economy Koo Yoon-cheol, "Did you not explain it? I hope you will do a better job explaining policies so that such misunderstandings do not arise."

He added, "Policy consistency is very important. Decisions must be made carefully, but once a decision is made, it must be carried out decisively to build trust in government policies."

(Photo: Cheong Wa Dae Photo Press Corps, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.