President Lee to Hold National Public Forum on Real Estate Policy on the 23rd

Kim Yongbeom Briefs on Policy

"Public Forums on Land, Finance, and Economy Scheduled for the 14th to 16th"

"Supply Plan Proceeding Smoothly... Considering Rational Improvements for Property and Transaction Taxes"

As housing prices in Seoul and the capital region continue to rise despite various regulatory measures, President Lee Jaemyung will hold a national public forum on real estate policy on the 23rd. Since last year, the government has introduced a series of demand-suppression measures, such as designating land transaction permit zones, tightening lending regulations, and reducing tax benefits for owners of multiple properties. However, as market instability persists, the government aims to hear directly from the public and the market before announcing additional measures, including the real estate tax system reform scheduled for the end of this month.

Yonhap News Agency

Kim Yongbeom, policy chief at the Presidential Office, held a briefing at the Blue House on the 10th, stating, "Public concern about the recent real estate market is growing." He added, "On the 23rd, President Lee will personally attend the public forum to discuss a wide range of opinions and explore policy directions." Before this, from the 14th to the 16th, the Ministry of Land, Infrastructure and Transport, the Financial Services Commission, and the Ministry of Economy and Finance will each host public discussions on supply, finance, and taxation, respectively, to gather input from experts and the public. Kim further explained, "An online feedback platform will be available so anyone can freely submit opinions regardless of time or location, and all received opinions will be thoroughly reviewed and fully reflected in both the forum discussions and the policy review process."

This upcoming forum is not merely a policy briefing, but rather serves as a public deliberation process to establish the direction of future real estate policies. The tax system reform is a complex policy that is intertwined not only with the stabilization of the real estate market, but also with the burdens on genuine homebuyers, tax burdens for retired seniors, and the potential for transaction volume to shrink. As such, the government’s intention appears to be to lower the political burden of future tax reforms and increase policy acceptance by listening to the voices of experts, the market, and the public, rather than presenting a unilateral conclusion.

Kim emphasized, "The government is taking the market situation very seriously and is reviewing policies with housing stability for the public as its top priority. The supply plan is proceeding without disruption, and for the overall tax system, including property holding and transaction taxes, we are considering rational improvement measures based on research studies and overseas examples."

So far, the government has gradually strengthened regulations on loans, taxation, and transactions to curb overheating in the real estate market. Under the June 27, 2025 measures, the government limited the maximum mortgage loan for home purchases in the capital region and regulated areas to 600 million won and lowered the loan-to-value ratio for first-time homebuyers from 80% to 70%. It also imposed a requirement to move into the purchased home within six months, targeting gap investment demand—buying homes with tenants still in place. Policy pressure on owners of expensive homes and multiple properties was also intensified. The temporary suspension of the capital gains tax hike for owners of multiple homes ended in May, and the government has consistently communicated its intention to reduce tax benefits for homes not used for actual residence. Despite these efforts, market conditions remained challenging. According to Korea Real Estate Board, in the first week of July, apartment prices in Seoul rose by 0.30%, widening the increase compared to the previous week. Nationwide, apartment prices climbed by 0.11%, and in the capital region, by 0.22%.

Kim said, "The burden and anxiety over home prices, rent, loans, and the ability to buy a home are difficulties that many people feel in their daily lives. The government does not presume to have all the answers. We will listen more to voices on the ground and actively accept better alternatives."

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