South Korean newspapers on July 24 reported extensively on statements by "Lee" regarding property holding taxes, indicating a policy direction to differentiate taxes, potentially reducing them for owner-occupied homes while strengthening them for high-value or speculative properties.
President Lee Jae Myung's remarks on revising the long-term holding tax deduction for homeowners have intensified controversy and raised uncertainty in Korea's real estate market. Lee proposed a phased abolition of the deduction, including a six-month grace period followed by partial reduction and full elimination after one year. The 1989 policy has provided tax relief of up to 80% for gains exceeding 1.2 billion won, supporting housing stability for middle- and lower-income households. Critics warn equating long-term homeowners with speculative investors could discourage property listings, increase rental prices and weaken market confidence.
