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6 clusters · 9 sources · 17 days · First seen · Last updated

Categories: POLITICS

South Korea real‑estate tax push deepens, approval slips

Entities: Kim Yun‑deok · Im Kwang‑hyun

Overview

President Lee Jae‑myung’s administration continues to steer a heated debate over housing supply, mortgage rules and property‑tax reform. Earlier ministerial hearings and a public‑opinion collection in March framed proposals for a revised holding‑tax and transaction‑tax package, while citizen groups on 21 July urged stronger taxes, expanded public housing and tighter profit‑recovery rules. The opposition accused Lee of exploiting loan limits by mortgaging his own apartment.

At a televised real‑estate policy forum on 23 July, Lee chaired a “national forum” and called for tougher holding taxes on high‑value homes, an “exit route” for owners of multiple properties, and limiting the primary‑home capital‑gains exemption to a single lifetime use. Polls released after the forum showed Lee’s overall approval at 40.8 % (down 7.8 points) and disapproval at 56.5 %.

On 26 July, Minister of Land, Infrastructure and Transport Kim Yun‑deok said the government is weighing selective green‑belt releases, higher floor‑area ratios for private redevelopment and faster permitting to boost housing supply, while warning that demolition of existing units could push prices higher. He also highlighted plans to activate non‑apartment housing projects and to improve financing support for private developers.

National Tax Service Commissioner Im Kwang‑hyun criticised the long‑term holding special deduction, noting that about 90 % of the relief benefits high‑value homes in Seoul and that the current unlimited 80 % deduction is regressive. These statements add pressure ahead of the upcoming legislative debate on revised holding‑tax and capital‑gains rules.

Lee also indicated discussion of raising the high‑price housing tax threshold to 30‑50 billion won and reiterated that redevelopment projects are unlikely to add many households, underscoring the need for careful land‑use planning.

Timeline

  1. 5 days ago

    [POLITICS] 2 sources
    South Korea debates housing supply reforms and tax deduction changes

    South Korean officials flag green‑belt releases and private housing incentives, while the tax chief warns the long‑term holding deduction overly favors luxury Seoul homes.

  2. 8 days ago

    [POLITICS] 9 sources
    South Korean President Lee Jae‑myung sees dip in approval as he pushes real‑estate tax reforms

    President Lee Jae‑myung’s real‑estate debate sees him back stronger holding taxes while approval drops to 40.8% (positives) and 51% in separate poll, amid talks of high‑price tax thresholds and limiting primary

  3. 10 days ago

    [POLITICS] 3 sources
    South Korea's housing policy debate sees public‑housing demands and criticism of president's mortgage deal

    South Korean citizen groups demand stronger taxes and more public housing ahead of a policy forum, while the opposition blames the president for an alleged mortgage loophole, sparking debate over housing equity

  4. 11 days ago

    [POLITICS] 3 sources
    South Korean lawmaker Ahn Cheol‑soo urges former President Moon Jae‑in to join real‑estate debate

    Ahn Cheol‑soo urged that former President Moon Jae‑in, ex‑minister Kim Hyun‑mi and former policy chief Kim Su‑hyun be invited to the May 23 real‑estate debate, criticizing past housing policies and demanding a

  5. 21 days ago

    [POLITICS] 2 sources
    South Korea's President Lee and policy chief discuss new growth outlook and real estate reforms

    South Korea's policy chief says the economy is on an unprecedented growth path, while President Lee calls a public debate on housing supply, finance and taxes amid rising real‑estate prices.

  6. 22 days ago

    [POLITICS] 4 sources
    South Korean President Lee Jae‑myung to Chair National Real‑Estate Policy Forum on May 23

    President Lee will host a May 23 real‑estate forum to discuss housing supply, mortgage caps and tax reforms; preceding ministerial hearings and public input will shape policy, amid opposition criticism and a le

Sources

biz.heraldcorp.com · cursorinfo.co.il · english.hani.co.kr · hani.co.kr · m.hani.co.kr · m.imaeil.com · news.donga.com · news.heraldcorp.com · stv.seoul.co.kr