President Lee's New Year's Press Conference on January 21
Lee: "Property Holding Tax Is a Burden on Our Citizens"
President Lee Jae-myung is taking questions from the press at the New Year's press conference held at the Blue House State Guest House on the 21st. Photo by Yonhap News
On the 21st, President Lee Jae-myung stated, "Real estate tax regulations have become necessary, and there is no reason not to use them just because they may not be ideal." This leaves open the possibility of utilizing tax policy to stabilize housing prices.
President Lee made these remarks during a press conference held at the Blue House State Guest House under the theme "Great Transformation Achieved Together, Great Leap Enjoyed by All."
He said, "It is not desirable to use tax policy as a regulatory tool for real estate. We should refrain from doing so as much as possible," but also emphasized, "However, if the situation calls for it, it is only natural to employ tax measures."
In particular, President Lee mentioned the long-term holding special deduction, stating, "Why should we grant tax cuts to those who have held properties for a long time for speculation or investment purposes, without even living in them?" He added, "It is strange to reduce taxes simply because someone has held speculative real estate for a long time, which is not even desirable."
However, President Lee dismissed discussions about strengthening property holding taxes, saying, "It is not politically appropriate and it places an undue burden on our citizens." He continued, "There are rumors about applying property holding taxes only to properties worth over 5 billion won, but for now, we are not seriously considering using tax policy as a real estate measure."
Additionally, President Lee announced that, in terms of real estate supply, "The Ministry of Land, Infrastructure and Transport will soon announce practical measures to expand supply."
He explained, "Rather than abstract figures, we intend to propose very specific and practical actions," adding, "We are looking for ways to increase new construction supply, as well as measures to encourage those who own multiple homes to put them on the market."
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