Lee: "No Consideration for Extension of Capital Gains Tax Exemption for Multiple Homeowners"

Yonhap News Agency

On January 23, President Lee Jaemyung stated on his social networking service (SNS), "We are not considering any extension of the capital gains tax exemption for owners of multiple homes, which is set to expire on May 9."

The capital gains tax exemption for owners of multiple homes is a temporary measure that exempts the additional capital gains tax imposed on the sale of properties by multiple homeowners, with the aim of revitalizing the housing market. The additional capital gains tax for multiple homeowners was first introduced during the Moon Jae-in administration in 2021. However, the Yoon Suk-yeol administration granted a one-year grace period starting in May 2022 and has extended it annually since then.

Regarding the special long-term holding deduction, President Lee pointed out, "It seems odd to grant tax reductions simply for long-term holding, not only for multiple homeowners but even for single-home owners, if the property is used for investment or speculation rather than as a residence." He criticized the special long-term holding deduction system, saying, "It essentially blocks properties from entering the market and encourages speculation."

He added, "Even among single-home owners, there are different cases," and explained, "If we must revise the tax system, shouldn't we treat non-residential and residential properties differently to ensure fairness?"