"Single Quality Home Causes Problems"... Weight Placed on Strengthening Holding Tax

[Anchor]

President Lee Jae-myung held a real estate policy discussion forum today (July 23). President Lee pointed out that the preference for a single high-value home has "caused serious problems in society." He also stated that if holding taxes had been normalized in the past, housing prices would not have risen to this extent, emphasizing that the degree and scope of strengthening holding taxes are important.

First, we have a report from reporter Park Yerim.

[Reporter]

During the live-broadcasted National Public Discussion on Real Estate Policy this morning, President Lee Jae-myung responded to an attendee's question asking what the government's real estate policy objectives are as follows.

[Yang Ji-young / Private Real Estate Expert: Is the goal market stabilization, a drop in housing prices, or regulations on gap investment or multiple homeowners?]

[President Lee Jae-myung: To put my thoughts simply, it is not about forcing prices down.]

President Lee added that it is not about ignoring market order and controlling prices, but rather preventing housing prices from being incorrectly formed due to abnormal supply and demand.

Regarding the so-called "single high-value home" phenomenon of holding just one expensive apartment, he pointed out, "It has caused serious problems in our society" and "rather, it has created an opportunity for efficient speculation."

[President Lee Jae-myung: While we respect and protect single-home ownership, treating them all the same regardless of whether they are expensive or cheap resulted in people efficiently buying one home and enjoying investment profits.]

The discussion also covered which housing price threshold should be targeted if the holding tax burden on ultra-high-value homes is strengthened.

[Jung Se-eun / Professor of Economics, Chungnam National University: So, up to about twice the national average. (Shall we view 1 billion won or more as ultra-high-value?) Yes, that is correct.]

Counterarguments against the strengthening itself were also raised.

[Kim In-man / Real Estate YouTuber: If we hit ultra-high-value homes, will apartments priced below 1.5 billion won stabilize? If you hit non-residents and multiple homeowners, those people will end up hitting tenants...]

President Lee stated that the degree and scope of strengthening holding taxes are important, and because housing price issues are fatal once they blow up, preparations must be made even if it means incurring political costs.

[President Lee Jae-myung: If we had normalized holding taxes in the past, prices would not have risen to this extent.]

President Lee also mentioned that offering unlimited capital gains tax exemption benefits for single-home owners seems problematic, bringing up measures such as limiting the number of times or the total amount.

(Photo: Yonhap News)
(Video Reporting: Jung Sang-bo, Ha Ryong | Video Editing: Wee Won-yang)
※ Please note: This article was translated by AI and may contain errors.