South Korean housing and tax policy debate

South Korean housing and tax policies have become a central point of political contention. In mid-July, the government initiated sector-specific discussions regarding housing supply, finance, and taxation to address rising Seoul apartment prices and Jeonse rents. During these forums, President Lee Jae-myung engaged in “comment politics” by asking viewers to vote on whether to increase taxes for ultra-high-price homes, a move criticized by the opposition.

By August, political opposition intensified as former Daegu Mayor Hong Joon-pyo criticized the ‘2026 Tax Reform Plan.’ Hong specifically targeted proposals to apply multi-home owner tax standards to married couples with a single home and the plan to raise officially assessed land prices to 80% of market value, which he described as a “tax bomb.” He further argued that current housing suggestions and tax burdens discourage marriage and pressure retirees to sell their properties.

In mid-August, Seoul Mayor Oh Se-hoon criticized the government for excluding the Seoul Metropolitan Government from the policy-making process regarding the August 13 real estate measures. Oh argued that penalizing residents based on occupancy status risks “labeling citizens as speculators” and infringing on freedom of movement. He advocated for a shift from heavy regulation and taxation toward supply-driven solutions, such as urban redevelopment and reconstruction.

Simultaneously, internal divisions emerged within the opposition Democratic Party. Lawmakers from Seoul and Gyeonggi provinces expressed concern over potential changes to capital gains and comprehensive real estate taxes, while lawmakers from non-metropolitan regions argued that the political discourse is becoming “overly centered on Seoul’s interests.”