President Lee: 'Single Quality Home' Fenomenon Causes Serious Issues Due to Failure to Distinguish Residence from Speculation

President Lee Jae-myung pointed out today (the 23rd) that "the preference for a 'single quality home' has caused serious problems in South Korea," noting that "it has created an opportunity for efficient speculation."

President Lee made the remarks during a national public debate on real estate policy held at the KBS annex, addressing the phenomenon where individuals purchase a single high-priced apartment to evade regulations on multiple homeowners.

President Lee explained, "The intention of policy authorities at the time was to respect and protect one-household, one-home owners. As a result, regardless of whether a single home was expensive or cheap, they were treated the same, leading to a phenomenon where people efficiently buy one home and reap investment profits."

He emphasized, "Because we failed to distinguish whether a home is for habitation or for investment and speculation, massive problems arose from that tiny loophole."

President Lee added, "South Korea's real estate market has such high pressure that even a tiny hole makes it burst wide open. Some might think that suppressing ultra-high-end housing would reduce the pressure, but we need to discuss the appropriate level of tax burden for such measures."

However, during this process, President Lee also expressed the view that leaving a house vacant temporarily due to unavoidable circumstances should not be regarded as speculative.

President Lee said, "There are many criticisms asking what people are supposed to do if they move temporarily for work or briefly leave a home vacant for their children's education. People even ask if I am holding a non-owner-occupied home since my house is empty while I stay at the presidential residence."

He continued, "Going forward, let's change the term from 'actual residence' to 'for habitation.' Shouldn't temporary non-residence due to other circumstances be regarded as habitation and treated the same as actual residents?"

Jung Se-eun, a professor of economics at Chungnam National University who attended the debate, claimed, "The 'single quality home' would be subject to the comprehensive real estate holding tax. A tax reform bill will be unveiled soon, and it must be powerful. If we draw a sword from its scabbard only for it to be a fruit knife or a rusted sword full of holes, it will be difficult to stabilize the market."

She emphasized the need for high-intensity tax reform, stating, "We must not strengthen regulations on a 'single quality home' while setting the threshold too high, nor should we lower capital gains taxes in correspondence with strengthening holding taxes."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.