President Lee Jae-myung pointed out today (the 23rd) that "the phenomenon of owning a single, high-value home has caused serious problems in South Korea" and "has created opportunities for efficient speculation."

President Lee made the remarks during the National Public Debate on Real Estate Policy held at the KBS Annex today, addressing the preference for purchasing a single expensive apartment to avoid regulations on multiple homeowners.

President Lee explained, "At the time, the intention of policymakers was to respect and protect single-home ownership. 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 purchased one home to reap investment profits."

He emphasized, "Because we failed to distinguish whether a property was for living purposes or for investment and speculation, massive problems arose from that tiny loophole."

President Lee added, "The pressure in South Korea's real estate market is so high that even the smallest loophole causes it to burst open. There is also the thought that suppressing ultra-high-end housing would reduce the pressure, but we need to discuss what level of tax burden should be applied when doing so."

However, during this process, President Lee also expressed the view that temporarily vacant homes due to unavoidable circumstances should not be viewed as speculative properties.

President Lee noted, "There are many criticisms asking what people are supposed to do when they move temporarily for work or for their children's education. Since I am staying at the presidential official residence, my own home is vacant, and some even ask if that makes it a non-residential property."

He continued, "Let's change the term from 'actual residence' to 'for residential use' from now on. Shouldn't temporary non-residence due to other circumstances be regarded as for residential use and treated the same as actual residents?"

Professor Jung Se-eun of the Department of Economics at Chungnam National University, who attended the debate, argued, "A single, high-value home would likely 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 to reveal a fruit knife or a rusty, hole-ridden blade, it will be difficult to stabilize the market."

She emphasized the need for high-intensity tax reform, stating, "We must not set the criteria too high while tightening regulations on a single, high-value home, nor should we lower capital gains taxes in correspondence with strengthening property holding taxes."

(Photo: Yonhap News)