President Lee Jae-myung announced plans to increase property-holding taxes using differentiated rates during a real-estate policy forum on Thursday [1].

The move signals a shift in how the administration intends to manage housing stability and wealth distribution. By tailoring tax burdens based on ownership status, the government aims to curb speculation while protecting primary residents.

During the event, which was the first real-estate policy discussion forum chaired by a president, Lee met with about 140 people [1]. The gathering was designed to allow the administration to hear public opinions directly from citizens regarding the government's current policy direction [1].

Lee focused on the necessity of strengthening the property-holding tax, noting that there is general agreement on the need for such a measure [1]. However, he said that the specific level of the increase and the nature of the differentiation are the critical factors for success [1].

Under the proposed framework, the administration will apply different tax rates for single-home owners, multiple-home owners, primary residences, and ultra-high-value homes [1]. This tiered approach is intended to distinguish between those using property for shelter and those using it as an investment vehicle [1].

Beyond taxation, the forum served as a platform for the administration to outline its broader stance on housing supply and loan regulations [1]. The president said the goal is to create a balanced market that addresses the needs of various citizen demographics.

"The property-holding tax must be strengthened. This is something that is generally agreed upon," Lee said [1]. "How much it will be strengthened, and what kind of differentiation will be made—actually, these things are what is important," he said [1].

“The property-holding tax must be strengthened.”

This policy shift suggests a move toward more aggressive taxation of real estate assets to reduce market volatility. By differentiating between primary residences and high-value or multiple properties, the administration is attempting to penalize speculative investment without alienating the general voting public who own a single home.