'Holding Tax, Transaction Tax, and Loan Regulations': President Lee to Host National Real Estate Policy Forum on the 23rd (Comprehensive)

Kim Yongbeom, Policy Chief, Holds Briefing
"Public Concerns Over Real Estate Market Growing"
Ministry-Level Public Forums on Supply, Finance, and Taxation from July 14 to 16
"No Conclusions Have Been Pre-Determined... Tax Reform Plan to Be

Despite various regulations, the upward trend in housing prices in Seoul and the metropolitan area shows little sign of easing. In this context, President Lee Jae-myung has decided to personally preside over a national public debate on real estate policy on July 23. Since last year, the government has introduced a series of demand-suppression measures, including the designation of land transaction permit zones, loan restrictions, and reduction of tax benefits for owners of multiple homes. However, as market instability persists, the president intends to listen directly to the voices of the public and the market ahead of the announcement of the real estate tax reform plan, which is scheduled for late July to early August.

President Lee Jae-myung delivers a congratulatory speech at the Korea-Mongolia Business Forum held at a hotel in Ulaanbaatar, Mongolia, on the 9th (local time). 2026.7.9 Yonhap News Agency

Kim Yongbeom, policy chief at the Blue House, held a briefing at the Blue House on the 10th and said, "The public's concerns about the current real estate market are growing," adding, "On the 23rd, a public debate will be held with the direct participation of the president, where various opinions will be discussed together and policy directions will be explored." Prior to this, from July 14 to 16, the Ministry of Land, Infrastructure and Transport, the Financial Services Commission, and the Ministry of Economy and Finance will each host public forums on the themes of supply, finance, and taxation, respectively.

At these ministry-level forums, the Ministry of Land, Infrastructure and Transport will focus on supply and rental issues, the Financial Services Commission on loan regulations and other financial matters, and the Ministry of Economy and Finance on taxation, including holding and transaction taxes. The results of each ministry's discussions are expected to be addressed comprehensively at the presidential debate on the 23rd. Kim explained, "The opinions expressed from July 14 to 16, along with those raised at the scene, will be summarized and presented at the debate on the 23rd."

This debate is not simply a policy briefing but is intended as a public deliberation process to establish additional real estate policy directions in the future. Kim emphasized, "We are not holding this process with the conclusions already determined. We intend to listen, pay close attention, and deliberate." He added, "There are many opinions even just on supply, and the same is true for finance and even more so for taxation. There are too many topics to cover in one session, so after each ministry has discussed their issues sufficiently, we will reconvene for further discussion at the presidential debate."

The key point is the scope of the real estate tax reform plan, which is set to be announced at the end of this month or between late July and early August. Tax reform is a complex policy challenge, as it not only affects the stabilization of the real estate market, but is also intertwined with the burden on genuine purchasers, the tax burden on retired seniors, and the potential for reduced transactions. Kim stated, "Real estate is much more complex than just a commodity," and added, "It is difficult for the government to predict exactly how the market will react when the system changes."

Even so, Kim noted, "There is a deadline for announcing the 2026 tax reform plan. At the latest, it must be released by late July or early August," and added, "There will be sufficient time to reflect the opinions raised at the Ministry of Economy and Finance forum on the 16th and at the presidential debate on the 23rd in the final tax reform plan."

Additional Real Estate Measures to Be Announced Including Supply Policies and Financial Regulations

President Lee Jae-myung is speaking at the summit meeting with President Ukhnaagiin Khurelsukh held at the Government Building in Ulaanbaatar, Mongolia, on the 9th (local time). 2026.7.9 Yonhap News Agency

So far, the government has sequentially strengthened regulations on loans, taxation, and transactions to curb overheating in the real estate market. In the June 27 measures last year, the limit for mortgage loans for purchasing homes in the metropolitan area and regulated areas was set at 600 million won, and the loan-to-value ratio for first-time homebuyers was lowered from 80% to 70%. The requirement to move in within six months of purchase was also imposed to block "gap investment," where buyers purchase homes with tenants in place. Policy pressure on high-priced homes and owners of multiple properties was also increased. The temporary suspension of higher capital gains tax rates for owners of multiple homes ended in May, and the government has consistently communicated its intention to reduce tax benefits for homes not used as primary residences.

However, the market situation has 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 from the previous week. The nationwide apartment price growth rate was 0.11%, 0.22% in the metropolitan area, but only 0.01% in non-metropolitan areas. This suggests that upward pressure on housing prices is concentrated in Seoul and the surrounding region, rather than being evenly spread nationwide.

Statistics from KB Real Estate also show a clear upward trend in Seoul. In June, Seoul apartment sale prices rose 1.07% from the previous month, and rental prices increased by 1.43%, marking the largest increase so far this year. The sale price expectation index in Seoul was 125.3 and the rental price expectation index was 139.5, both far exceeding the baseline of 100. This indicates that, as both sale and rental prices rise together, market participants' expectations for further increases remain strong.

Additional real estate measures, including supply policies and financial regulations, are expected to be announced as soon as they are ready after the debates. Kim stated, "Stabilizing the real estate market is a major challenge right now, so we must proceed with supply measures as soon as they are prepared, with no reason to delay." He continued, "If there are results in areas such as drastically advancing the schedule of existing supply plans, presenting concrete schedules for sales, or securing new supply volumes, they should be announced without delay," adding that, "Unlike tax reform, there is no specific trigger for financial measures, so we intend to proceed as soon as preparations and consensus are reached."

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