President Lee Calls for Tripling Property Tax Amid Housing Crisis

President Lee Jae-myung stated that if property taxes had been normalized in the past, home prices would not have risen to their current levels. He made these remarks during a national discussion on real estate policy held at KBS in Yeouido, Seoul.

President Lee emphasized the need for preparation, even at the cost of political backlash, saying, "It is difficult to take on too much responsibility, but we must be ready for the consequences." He noted that to align with typical levels in developed countries, property taxes would need to be increased by at least three times. However, he cautioned that such an increase could lead to unrest.

Regarding implementation, he suggested establishing a reasonable tax burden based on ownership of a single home, with potential reductions for primary residences. He also mentioned the importance of considering regional factors and providing support for local areas.

President Lee identified the rental system as a significant factor contributing to the surge in apartment prices. He pointed out that providing nearly unlimited loans for rental support to low-income families has inadvertently driven up home prices, leading to situations where individuals can secure loans or guarantees for 100% of the home price, which can result in fraud.

He stated, "While rental loans serve as a support policy for housing stability for the underprivileged, they have also become a primary cause of soaring home prices. It seems time to adjust this system. However, we must ensure that necessary support is provided to young people, newlyweds, and first-time renters with valid needs."

Additionally, President Lee expressed skepticism about the effectiveness of redevelopment and reconstruction in significantly increasing housing supply. He noted that while these projects improve living conditions and housing quality, they may not lead to a net increase in the number of households.

He remarked, "In the case of redevelopment, it seems that the total number of households often decreases. While living conditions improve and higher-quality housing is provided, many existing residents must relocate, which can lead to a reduction in the total number of households." This comment reflects a cautious stance on viewing redevelopment and reconstruction solely as means to increase housing supply.