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

President Lee Jae-myung stated, "Earned income tax can reach up to 49.5% when various additional taxes are factored in, yet even if capital gains from real estate reach the 10 billion won range, the tax is only a few hundred million won."

Presiding over a Cabinet meeting at the Cheong Wa Dae, President Lee made the remarks, saying, "While it is understandable to grant tax reductions if someone happened to acquire property by chance, if someone makes billions of won by purchasing property for investment purposes and pays almost no tax, it is deeply unfair compared to the earned income of workers."

Regarding the current capital gains tax, President Lee also emphasized, "It 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 need to be adjusted."

He further stressed, "Talking about taxes to the public is difficult for the government, and it is not a popular thing to do. However, if the tax system is not normalized, equity issues will arise."

This is interpreted as an explanation and a request for understanding regarding the inevitable background behind the government's real estate tax reform plan announced the previous day (the 3rd), which significantly increases the comprehensive real estate holding tax and capital gains tax burdens on high-priced homes and non-resident single-home owners.

Regarding the temporary easing of heavy capital gains taxes on multiple-home owners in regulated areas following the real estate tax reform, President Lee emphasized, "There were criticisms asking why we are effectively extending the suspension of heavy taxation for multiple-home owners and pointing out a lack of policy consistency, but that is not true."

He explained that rather than completely abolishing heavy taxation, the measure was designed to provide an "exit route" for multiple-home owners by temporarily lowering rates and raising them step-by-step.

During this process, President Lee also instructed Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol, saying, "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 extremely important. Decisions should be made cautiously, but once a decision is made, it must be pursued firmly to build trust in government policies."

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