President Lee: "Property Tax Is Relatively Low... Should Match the Burden of Advanced Countries"

President Lee Jaemyung has brought up the issue of property tax in response to real estate concerns. He stated, "Overall, our property tax is relatively low," and added, "While homes used for actual residence should be protected, I believe it is appropriate for high-priced homes or multiple properties, which have become luxury items, to bear a tax burden comparable to that of advanced countries."

During a press conference marking his first year in office, held at the State Guest House of the Blue House in Jongno-gu, Seoul, on the morning of June 8, President Lee responded to a question about real estate by saying, "The most serious problem undermining the future of South Korea is real estate speculation. Tax issues related to real estate will only be sorted out by July." He made these remarks while discussing the real estate situation.

Yonhap News

President Lee first addressed real estate concerns by stating, "Capital is tied up in real estate and is not being injected into productive sectors. Breaking away from being a republic of real estate speculation is the only way for this country to survive." He continued, "If housing prices rise abnormally, the bubble will eventually burst. Since we have a high level of private debt, we must consider what the impact would be."

As solutions, President Lee proposed expanding supply and tightening tax and financial regulations. Regarding supply, he explained, "From 2022 to 2024, approvals and starts for reconstruction and redevelopment projects have decreased, causing supply to fall by nearly half compared to previous years. Whether through new construction, land development, or reconstruction and redevelopment, we will speed up the process. We are currently finalizing policies to increase supply and will announce them soon."

He also stated that comprehensive measures, including tax and financial regulations, would be prepared around July together with next year's budget proposal. He said, "We need to increase the burden on speculative and investment-purpose properties, not residential homes, so that they come onto the market. The solution is to lower expected returns." He added, "Private sector debt is said to be exceeding 2,000 trillion won. I believe we need to reduce credit and mortgage lending related to real estate."

Regarding the surge in jeonse and monthly rent prices, President Lee commented, "It is true that the reduced supply has led to a noticeable increase, but statistically, there has not been an explosive surge. This is part of the normalization process." On the supply of public rental housing, he stated, "We intend to provide homes of good quality that the average middle class can comfortably afford."

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