[Anchor]

Regarding the real estate tax reform plan announced by the government, President Lee Jae-myung pointed out the issue of fairness between earned income and capital gains tax. He also refuted criticism regarding the lack of policy consistency, explaining that the phased application of heavy capital gains taxes on multiple homeowners is meant to provide an "exit strategy."

Reporter Kang Min-u has the details.


[Reporter]

President Lee pointed out that while the effective top tax rate on earned income reaches 49.5%, real estate capital gains tax falls far short of that, protecting real estate speculation rather than housing security.

[President Lee Jae-myung: Right now, even if capital gains from real estate reach tens of billions of won, the tax is only a few hundred million won, right? Making tens of millions of dollars through investment while paying almost no tax is extremely unfair compared to the earned income of workers.]

He also actively refuted criticisms regarding the heavy capital gains tax on multiple homeowners, which was revived last May but relaxed into a phased implementation just three months later.

[President Lee Jae-myung: There was criticism questioning whether we are giving multiple homeowners an opportunity, or effectively extending it, and claiming a lack of policy consistency. But that is not true.]

He explained that the heavy taxes are not completely abolished, but rather temporarily lowered and then raised in phases, thereby opening a two-year exit route.

Immediately after returning to the country the day before yesterday (the 3rd), President Lee presided over an inspection meeting on the real estate and stock markets lasting more than seven hours, focusing on prompt real estate supply measures.

Reviewing the status of new housing site developments such as the Taereung Golf Course in Seoul, the Gwacheon Racecourse, and the Defense Security Command site, President Lee instructed Prime Minister Han Sung-sook and heads of relevant ministries to comprehensively re-examine the supply measures.

The issue of single-stock leverage ETFs, cited as a cause of the sharp fluctuations in the stock market, was also discussed. A Cheong Wa Dae official stated, "Rather than a structural problem with ETFs, it overlaps with the tendencies of domestic investors and liquidity," adding, "Opinions were raised that public relations and awareness campaigns might be more necessary than institutional improvements."

(Video by Jeong Sang-bo, Ha Ryung | Video Editing by Lee Seung-jin | Design by Kang Yun-jung)