[2025 National Assembly Audit] LH President: "Real Estate Transaction Taxes Should Be Reduced or Abolished"

National Assembly Land, Infrastructure and Transport Committee Audit on October 14

On October 14, Lee Hanjoon, President of Korea Land and Housing Corporation (LH), stated, "I believe that real estate transaction taxes should be reduced or abolished."

During the National Assembly audit on this day, Lee made this remark in response to a question from Um Taeyoung, a lawmaker from the People Power Party, who asked, "There are opinions that transaction taxes should be lowered. What is your view?" Lee replied, "I completely agree," and added, "I have always thought that it is appropriate for people living in high-priced apartments to pay a corresponding property holding tax, and that allowing properties to be freely traded in the market is the desirable policy."

Yonhap News Agency

The transaction tax refers to taxes paid when buying or selling real estate, such as acquisition tax or capital gains tax. According to data previously released by the Korea Institute of Public Finance, as of 2017, the effective real estate transaction tax rate in South Korea was about 3.9%. This is lower than the rates in the United Kingdom (4.7%) or France (5.2%). Although the proportion of real estate transaction taxes relative to gross domestic product is 1.13% in South Korea, which is higher than in major countries, the effective tax rate is somewhat lower due to the high turnover rate and concentration in the real estate market.

Lee also stated, "Supplying new homes is not the only form of supply; encouraging the release of existing homes onto the market is also a form of supply," and added, "A virtuous cycle and market adjustment are possible only when there are plenty of properties available in the market."