Lee Hyeongil on Calls to Ease Comprehensive Real Estate Tax for Nonresidents: "Principle of Favoring Owner-Occupied Homes Must Be Upheld"

Reaffirms Differentiated Comprehensive Real Estate Tax Deduction Policy

Deputy Prime Minister and Minister of Finance and Economy Lee Hyung-il speaks at the External Economic Ministers’ Meeting held at the Government Complex Seoul in Jongno-gu, Seoul, on November 6, 2026. Photo by Cho Yongjun

Deputy Prime Minister and Minister of Finance and Economy Lee Hyeongil said, regarding calls to raise the basic deduction for the Comprehensive Real Estate Tax for non-resident single-home owners to KRW 1.4 billion, the same level as for owner-occupied homes, that “the principle of giving preferential treatment to homes used as residences must be upheld.”

At a subcommittee review of economic ministries by the National Assembly’s Special Committee on Budget and Accounts on November 10, Deputy Prime Minister Lee said, “The key point of this tax reform is to establish a housing market centered on residences,” adding, “This principle must be upheld.”

He added, “We plan to extend the same KRW 1.4 billion deduction to people who do not live in their homes for unavoidable reasons, treating them the same as those who actually live there.”

In August, the government announced a tax reform plan that would raise the basic deduction for owner-occupied single-home owners from KRW 1.2 billion to KRW 1.4 billion, while lowering it for non-resident single-home owners from KRW 1.2 billion to KRW 900 million.

However, after opposition emerged from some members of the ruling party, the government scrapped the plan to lower the basic deduction for non-resident single-home owners and decided to keep it at KRW 1.2 billion.

In this connection, the Democratic Party is urging the government to set a uniform basic deduction of KRW 1.4 billion, regardless of whether a homeowner lives in the property, at a high-level party-government meeting on November 8.

In a post on his social media account that day, Deputy Prime Minister Lee also reaffirmed the policy of favoring owner-occupied homes, saying, “The key to this real estate tax reform is a housing market policy centered on residences. Given the limited housing supply, this government principle must be upheld to give as many people as possible the opportunity to own a home they intend to live in.”

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