Lee vows stricter property taxes to fight speculation

President Lee Jae-myung on March 24 urged officials to craft comprehensive real estate measures with no room for evasion, calling for tightly coordinated policies spanning taxation, regulation and finance. His remarks signaled a firm willingness to deploy stronger tools, including higher holding taxes, to stabilize the housing market.

Speaking at a Cabinet meeting at the presidential office, President Lee Jae-myung said political considerations should not influence policy decisions. He rejected the notion that the government cannot control the real estate market, noting views that the market is unbeatable or that authorities would eventually yield to political pressure. Lee warned that allowing speculation to continue would have serious consequences for the country, saying resistance from vested interests is inevitable but must be overcome. Failure to do so, he added, would jeopardize both the administration’s future and the nation’s stability.

Earlier that day, Lee shared on social media a report outlining property holding tax levels in major global cities such as New York and Tokyo, noting that he had been curious about the comparison. Kim Yong-beom, the presidential chief of staff for policy, said in a media interview that the government is reviewing property tax systems in metropolitan cities including New York, London, Tokyo and Shanghai.

Against this backdrop, analysts say the government could introduce a high-intensity real estate package, including a tax overhaul, around the June 3 local elections. Land, Infrastructure and Transport Minister Kim Yoon-deok said preparations are underway to revise the property holding tax system, covering ultra-high-value homes and non-resident single-homeowners, ahead of the May 9 end of a temporary suspension on heavy capital gains taxes for multi-homeowners.


Hoon-Sang Park tigermask@donga.com