South Korean real estate tax reforms face public backlash

South Korean real estate tax reform proposals are facing significant public backlash. According to Gallup Korea, real estate policy has become the top reason for negative job performance evaluations of President Lee Jae-myung, with 28% of dissatisfied respondents citing it as a primary concern.

In Seoul, Seocho-gu officials delivered 2,461 resident opinions to the Ministry of Economy and Finance regarding the ‘2026 Real Estate Tax Reform Plan’. The proposal aims to shift taxation from a house-count basis to one centered on actual residency and property value. This includes restructuring the special deduction for long-term holding into a residency-based deduction.

Residents expressed concerns that the changes could unfairly penalize long-term single-homeowners by treating them similarly to speculators. Many noted that while property values have risen, actual household income has not necessarily increased, leading to fears of being forced to leave lifelong homes due to sudden tax burdens. Seocho-gu has formally requested the government to implement tax relief measures based on actual payment ability and to provide sufficient transitional periods to ensure predictability.