President Lee Jae-myung announced plans to reform the real estate tax system in July.
During a press conference at the Blue House on his first anniversary in office, President Lee responded to questions about future real estate policies, stating, "We plan to address tax, finance, regulation, and supply issues all at once soon. The tax reform will be possible in July."
He noted that property taxes in South Korea are generally low, saying, "Even if people accumulate a lot of properties, the burden is minimal. If homeowners put their speculative properties on the market, there would be a significant increase in supply."
President Lee also pointed out the high prices of unused rural land, questioning, "Isn't it strange? This prevents those who need it from using it. We need to fix this and fundamentally lower the expected return rates."
Regarding the recent decrease in rental properties, which has led to a rental crisis, he remarked, "Renting is a unique form of private finance that exists only in South Korea, and it is currently on the decline. A normalization process is necessary. It is natural that the supply of rental properties has decreased."
He explained that the government's decision to end the special taxation on capital gains has encouraged multiple homeowners to list their properties, resulting in a natural reduction in rental inventory, as first-time buyers have moved in, decreasing rental demand.
"In the past, the extensive provision of rental loans was a major cause of rising home prices," he added. "That has distorted the market. Ultimately, I believe it will gradually disappear."
Reflecting on his first year in office, President Lee stated, "We have managed to contain upward pressure on housing prices fairly well. I think the positive impacts on the election were greater than the negative ones. If we hadn't intervened verbally since January, prices would have skyrocketed."
On supply measures, he said, "We aim to provide affordable, high-quality housing in good locations that middle-class families can comfortably live in. We will accelerate this process and announce our plans soon."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.