{"id":96208,"date":"2026-07-23T12:16:12","date_gmt":"2026-07-23T12:16:12","guid":{"rendered":"https:\/\/www.europesays.com\/korea\/96208\/"},"modified":"2026-07-23T12:16:12","modified_gmt":"2026-07-23T12:16:12","slug":"president-lee-jae-myung-has-repeatedly-expressed-his-intention-to-reorganize-the-holding-tax-and-cap","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/korea\/96208\/","title":{"rendered":"President Lee Jae Myung has repeatedly expressed his intention to reorganize the holding tax and cap.."},"content":{"rendered":"<p>            <img decoding=\"async\" src=\"https:\/\/www.europesays.com\/korea\/wp-content\/uploads\/2026\/07\/20260724_01160103000001_L00.jpg\" orgwidth=\"1000\" orgheight=\"592\" alt=\"\uc0ac\uc9c4\uc124\uba85\"\/>                      \uc0ac\uc9c4 \ud655\ub300<br \/>\nPresident Lee Jae Myung has repeatedly expressed his intention to reorganize the holding tax and capital gains tax system to block the real estate market&#8217;s &#8220;smart house&#8221; trend and repeated pursuit of market profits.<\/p>\n<p>The holding tax is expected to be adjusted by subdividing the imposition criteria according to the actual residence status and housing price. In addition, the transfer tax has rapidly emerged to prevent reckless transfer by opening a retreat for multi-homeowners to resolve the lock of sales and introducing a &#8220;total amount system for each life cycle (number and total limit)&#8221; for long-term holding special deductions, which are a reduction in transfer tax. The government plans to review and reflect these details in the tax reform plan to be announced in late July and early August.\n<\/p>\n<p>\u25c6 Ownership tax, multiple homeowners and luxury housing increase\n<\/p>\n<p>President Lee said at a public debate on real estate policy on the 23rd, &#8220;Japan once had difficulties (with real estate issues). Prices continued to rise and burst like balloons when they reached the breaking point, and there were talks about &#8220;lost 20 years, lost 30 years,&#8221; he said, adding, &#8220;In fact, there are quite a few people who are worried that we are also running toward that peak.&#8221; &#8220;Even if we try to raise Korea&#8217;s holding tax to the level of ordinary advanced countries, we have to raise it by three times,&#8221; he said. &#8220;If we triple it now, there will be almost a riot.&#8221; &#8220;If it had been normalized in the past, house prices would not have risen this much,&#8221; he said. &#8220;I&#8217;m now trying to prepare even if I suffer some political losses.&#8221; He hinted at an increase in the holding tax.\n<\/p>\n<p>In particular, the government is expected to change the method of imposing comprehensive real estate taxes on a price basis according to the number of houses, protecting residential single-homeowners and increasing the burden of holding them, focusing on multi-homeowners and non-resident single-homeowners. President Lee said, &#8220;The burden of possession will be set appropriately based on the usual one-house, and if you live, you will be reduced once, and if it is for the common people or the middle class, you will be reduced again in terms of protection,&#8221; adding, &#8220;The weighting factor is classified as a luxury house, if it is multi-household, or if it is for obvious speculation.&#8221;\n<\/p>\n<p>\u25c6 I can&#8217;t come to a conclusion on the criteria for super expensive housing\n<\/p>\n<p>On this day, there was an opinion that the standard for ultra-high-priced houses, which will be the standard for strengthening holding taxes, should be 2 billion won or 3 billion won. Lee Hyung-il, the first vice minister of the Ministry of Finance and Economy, reported the results of the opinion collection and said, &#8220;The opinion was presented that it was more than 3 billion won to more than 5 billion won.&#8221;\n<\/p>\n<p>President Lee said, &#8220;In the provinces, 3 billion won is an extremely expensive house, and of course, it is very expensive, but if you weigh 3 billion won in Seoul, there can be huge tax resistance,&#8221; adding, &#8220;It is difficult to determine how much is appropriate because it depends on the situation.&#8221; If the government accepts on-site opinions and sets the standard at 2 billion won or 3 billion won, the market price will be around 3 billion won and 4 billion won, respectively. This is because the ratio of the official price to the current market price of apartment houses is 69%.\n<\/p>\n<p>According to real estate R114, 12% of all apartments in Seoul are estimated to be subject to a holding tax increase based on the recent market price when the declared value of 2 billion won is set as an ultra-high-priced house.\n<\/p>\n<p>If the official price of 3 billion won becomes the standard for ultra-high-priced houses, the number of households subject to strengthening holding taxes will be reduced mainly in the three Gangnam districts. This is because only 5% of Seoul&#8217;s apartments exceed 4 billion won in market price. Among apartments worth more than 4 billion won in Seoul, 3 Gangnam districts account for a total of 86%. If Yongsan-gu (8%) is added to this, the proportion of four districts alone reaches 95%.\n<\/p>\n<p>\u25c6 Consideration of reduction of transfer tax, limitation of number of times and total amount\n<\/p>\n<p>The transfer tax rate is expected to fall relatively. This is because it suggests a policy notice to prevent the phenomenon of being locked up for sale.\n<\/p>\n<p>President Lee said, &#8220;It is also true that we need to create a retreat (for multi-homeowners who are burdened with more possession).&#8221; This suggests a heavy transfer tax and a partial suspension. However, it is expected that the degree of reduction will be different from that of multiple homeowners who have already sold their houses to avoid heavy and deferred regulations in January to May this year. President Lee said, &#8220;Those who believed what the national chief executive said should not feel a loss,&#8221; adding, &#8220;Some say that it is better to give them a chance to escape less.&#8221;\n<\/p>\n<p>In addition, the Jang Gongje system, which used to cut up to 80% of the gains from the transfer, is expected to be groomed due to criticism that it deepened the phenomenon of &#8220;one smart house,&#8221; which is a concentration of high-priced houses. Currently, single-family single-home owners receive tax-free benefits up to 1.2 billion won in actual transaction prices, and up to 80% of the long-term special system will be applied depending on the period of holding and residence, reducing the tax burden. The method is &#8216;the total amount of transfer tax reduction or exemption for each life cycle&#8217;.\n<\/p>\n<p>Lee Kwang-soo, CEO of Gwangsu Nebokbang, proposed to limit the transfer tax reduction of one household and one house to once in his life. In response, President Lee said, &#8220;I don&#8217;t know if the transfer tax reduction will be made once in a lifetime, but giving infinite opportunities seems problematic,&#8221; adding, &#8220;It is a very reasonable point.&#8221; He added, &#8220;We can also think of ways to limit the number of times or do a lot of the first and less the second,&#8221; adding, &#8220;We can also limit it to the total amount.&#8221;\n<\/p>\n<p>If &#8220;limited number of times&#8221; and &#8220;application of differential&#8221; become a reality for the transfer tax reduction, the special deduction rate of up to 80% from the second house could be gradually reduced or the tax burden could surge due to the lifetime deduction limit. This also means that it will block the path of asset growth through &#8216;transfer&#8217; of single-home owners and limit the special system to the original purpose of &#8216;long-term resident compensation&#8217;.\n<\/p>\n<p>\u25c6 Change the term &#8216;residential&#8217; instead of &#8216;living in&#8217;\n<\/p>\n<p>Meanwhile, President Lee also proposed changing the term &#8220;real residence&#8221; to &#8220;residential&#8221; or &#8220;residential&#8221; during the tax reform process. The intention is that even if you can&#8217;t live in the house for a certain period of time due to unavoidable reasons such as work movement, children&#8217;s education, hospitalization, or residence, if you have it for the original purpose of residence, you should protect it the same as the actual resident. President Lee said, &#8220;I asked to change the term in the future,&#8221; and added, &#8220;Let&#8217;s not say it&#8217;s actually living, but it&#8217;s for residential use.&#8221;\n<\/p>\n<p>[Reporter Na Hyun-joon \/ Reporter Kim Geum-yi \/ Reporter Lee Yong-an]<\/p>\n","protected":false},"excerpt":{"rendered":"\uc0ac\uc9c4 \ud655\ub300 President Lee Jae Myung has repeatedly expressed his intention to reorganize the holding tax and capital&hellip;\n","protected":false},"author":2,"featured_media":96209,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[50058,50065,50057,48436,50062,50061,49918,31,146,50059,50064,14763,50060,33,50063],"class_list":["post-96208","post","type-post","status-publish","format-standard","has-post-thumbnail","category-south-korea","tag-1-homeowner","tag-asset-value","tag-disclosure-price","tag-high-priced-housing","tag-holding-burden","tag-housing-receipt","tag-kbs-annex","tag-korea","tag-lee-jae-myung","tag-long-term-special-deduction","tag-public-debate","tag-real-estate-policy","tag-real-estate-","tag-south-korea","tag-weighting-factor"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/96208","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/comments?post=96208"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/96208\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media\/96209"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media?parent=96208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/categories?post=96208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/tags?post=96208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}