President Lee's SNS Message
"Investment and Speculation Will Be Thoroughly Blocked"
"Detailed Weights Applied According to Residential Use, Number of Homes, and Price Levels"
Capital Gains Tax Surcharge Suspension Ends on May 9... "Holding On Will Result in a Loss"
President Lee Jaemyung announced that the government will mobilize all policy tools to create a situation where not only multi-homeowners but also owners of single homes held for investment or speculation-rather than residential purposes-find it more advantageous to sell than to hold. This marks a clear intention to expand policy design, which has so far focused on multi-homeowners, to include single homes owned for investment or speculative purposes, ensuring that selling is more profitable than holding.
On the 26th, President Lee stated on X (formerly Twitter), "While we will actively protect ordinary residential housing, we will design the system to thoroughly block investment and speculation using real estate," adding, "All types of regulations and burdens will be based on single homes for actual residence, with more detailed weights applied according to residential use, number of homes, and price levels." He continued, "Ultra-high-priced homes will face burdens and regulations commensurate with those in the capitals of advanced countries."
Previously, on January 23, President Lee had questioned the logic of providing long-term holding tax deductions-a major method of tax reduction-on homes held for investment or speculation, rather than residential use, suggesting the possibility of reform. Through this latest message, he has signaled a firm commitment to undertaking such policy design in earnest.
Regarding the temporary suspension of the capital gains tax surcharge on multi-homeowners, which ends on May 9, President Lee also stressed that the government will ensure "holding on will result in a loss." The Ministry of Economy and Finance previously announced that the capital gains tax surcharge suspension would end on May 9, and to reduce confusion in the market, any contracts signed before May 9 would be allowed up to six months for payment completion and registration.
President Lee stated, "For the government to function properly, its authority must be maintained, and a government that loses authority becomes not just a waddling duck, but a lame duck." He continued, "Government authority is derived from trust and consistency," emphasizing, "We cannot allow a situation where multi-homeowners who hold on are better off than those who sell before May 9."
He reiterated that there are ample policy tools available to stabilize housing prices. President Lee said, "As someone entrusted with power by the people, if I am willing to endure criticism and resistance without calculating votes, I have numerous measures at my disposal-including taxation, finance, and regulation-to prevent ruinous real estate speculation." He added, "Through strong financial, tax, and regulatory measures, we will create a situation in which, even after May 9, multi-homeowners benefit more from selling despite the capital gains tax surcharge (making holding on even more disadvantageous). Moreover, we have no choice but to do so."
He further stated, "The key to normalizing Korea is to ensure that those who follow the rules and government policy are not penalized, while those who go against policy or break the rules do not profit, according to the standards of the public." He concluded, "Properties kept off the market will be suffocated, and holding out will only result in greater burdens. Lee Jaemyung will deliver."
Meanwhile, on the 26th, during a senior aide meeting at the Blue House, President Lee received a report on the development of public housing sites in the Seoul metropolitan area, including the third phase of new towns. He said, "Dragging things out too long is no different from not doing them at all," and urged for acceleration. According to Blue House spokesperson Kang Yujeong, President Lee gave these instructions after receiving a progress report from the Office for Economic Growth on the follow-up measures for real estate supply policies.
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