President Lee: "We Will Use All Policy Tools to Make Selling Even a Single Speculative Home More Advantageous"

President Lee's Message on Social Media
"Ordinary residential use will be actively protected... Speculation and investment will be thoroughly blocked"
"People are free to hold on... The government's authority comes from credibility and consistency"

President Lee Jaemyung has announced a plan to further toughen real estate regulations, stating that he will create a situation in which even owners of a single non-residential, investment- or speculation-purpose home will find it more advantageous to sell than to hold.

Yonhap News Agency

In a post on X (formerly Twitter) on the 26th, President Lee wrote, "By mobilizing every policy tool available, we will create a situation in which not only multiple-home owners but also owners of a single non-residential, investment- or speculation-purpose home find selling more advantageous than holding," adding, "We will actively protect ordinary residential use, but we will design the system so that investment and speculation using housing are thoroughly blocked." He also signaled, "Ultra-high-priced homes will face burdens and regulations equivalent to those in the capitals of advanced countries."

This message directly targets concerns in the market about potential "lock-in of listings" ahead of the May 9 expiration of the temporary suspension of heavier capital gains tax on multiple-home owners. President Lee stressed, "We cannot leave a situation where multiple-home owners who hold on are better off than those who sell before May 9," and added, "We will create a situation in which, even after May 9, selling (even at the cost of heavier capital gains tax) is more profitable and holding on results in greater loss." He also argued that if the government's "credibility and consistency" collapse, the market will be shaken and state affairs will become difficult to manage.

President Lee went on to say, "The government will, through strong financial, tax, and regulatory measures, create a situation in which selling is beneficial and holding on leads to greater loss," emphasizing, "It is your freedom to hold on, but it would be wise to keep this in mind." He added, "Locked-up listings will be suffocated, and holding on will become a greater burden," and further explained, "Ensuring that those who go against government policy and break the rules do not profit is the key to normalizing the Republic of Korea."

This content was produced with the assistance of AI translation services.