President Lee Jae Myung signals that South Korea’s property holding taxes should be tightened to curb housing speculation and cool soaring home prices. Speaking during a televised public forum on housing policy, Lee says speculative multiple-home owners should face a heavier tax burden than owner-occupiers. He frames the debate around the government’s upcoming tax reform package expected later this month, which aims to rein in runaway housing prices driven by speculative purchases. Lee also suggests that aligning property holding taxes with those in advanced economies would require significant increases. He estimates that taxes would need to rise at least threefold, while warning that such a jump could trigger strong public backlash, including the possibility of a “public uprising.” As a result, Lee indicates the government would likely compromise on the pace or extent of tax changes to balance policy goals with political feasibility. The forum, which runs longer than planned, allows citizens and policymakers to exchange proposals, and participants broadly agree on the need to strengthen the property holding tax regime, with attention to differentiating between speculative owners and those living in their homes.
Lee Jae Myung signals tougher property holding taxes to curb housing speculation
President Lee Jae Myung signals that South Korea’s property holding taxes should be tightened to curb housing speculation and cool soaring home prices. Speaking during a televised public forum on hous...
- President Lee Jae Myung calls for stronger property holding taxes to curb housing speculation.
- Lee says multiple-home owners for speculative purposes should pay a higher tax burden than owner-occupiers.
- Lee links the remarks to an upcoming government tax reform package expected later this month.
- Lee says aligning with advanced economies would require large increases, estimating at least a threefold rise.
- Lee warns that very large tax hikes could trigger public backlash and says the government may compromise.
The televised public hearing hosted Thursday by President Lee Jae Myung on housing policy offered a rare chance for citizens and policymakers to exchange suggestions on how to address and navigate the soaring housing market. The discussion went on for three hours, longer than the initially planned 100 minutes. Still, three hours was insufficient for the critical issue of housing, which is considered both a home and an asset for Koreans. The president stressed above all tougher property holding taxes, as he pledged to "normalize the wrongly formed housing prices based on asymmetric supply and demand" despite its potential "political cost." It was an open venue for exchange that started on the belief that there is a need to strengthen the country's property holding tax regime. "To bring Korea's property holding taxes in line with those of advanced economies, they would have to be raised at least threefold," Lee said. With such a hefty rise likely to trigger a "public uprising," the president said the government would have to compromise. The majority of the participants agreed to the streng
1 hour agoPresident Lee Jae Myung on Thursday signaled stronger property holding taxes to curb housing speculation, saying speculative multiple-home owners should bear a heavier tax burden than owner-occupiers. The remarks came during a televised public forum on housing policy ahead of the government's tax reform package expected later this month. The package is aimed at reining in runaway housing prices, as speculative purchases drive home prices high, leaving many people unable to afford to own their own homes. "To bring Korea's property holding taxes in line with those of advanced economies, they would have to be raised at least threefold. But if we tripled them now, it could trigger something close to a public uprising," Lee said. "If we leave things as they are, the problem will deal a massive blow to the country. We need to address this issue, even if it comes at a political cost." Lee said there was broad public support for stronger property holding taxes, but stressed that tax policy should differentiate between owner-occupiers and those owning multiple homes for speculative purposes. Owner
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