President Lee Jae-myung announced plans to reform the national tax system to curb unearned real-estate income during a recent cabinet meeting [1].
The move signals a significant shift in the administration's approach to housing stability and social equity. By targeting speculative gains, the government aims to reduce social division, and restore a sense of fairness in the property market [1].
Speaking at the State Council meeting, Lee said that unearned real-estate income driven by illegal methods and loopholes has become a primary culprit in destroying common sense and hindering national integration [1]. He said that such gains undermine the cohesion of the country [1].
To address these issues, Lee said he will rationally reorganize the tax system, including specific reforms to property taxes [1]. The administration is also preparing detailed measures to increase housing supply and support genuine buyers to help normalize the market [1].
These announcements come as a precursor to the Real-Estate Policy National Forum, which is scheduled for July 23 [2]. The cabinet meeting where Lee outlined these goals took place two days before the 23rd [2].
Lee said, "The unearned real estate income, in which illegal and expedient methods are mobilized, has become the biggest culprit in destroying the fairness and common sense of our society and hindering national integration" [1].
Regarding the technical changes to the law, Lee said, "I will also rationally reorganize the tax system" [1]. The administration intends to use these reforms to ensure that the housing market serves residents rather than speculators [1].
“Unearned real-estate income... has become the biggest culprit in destroying the fairness and common sense of our society.”
This policy shift suggests the South Korean government is prioritizing the mitigation of wealth inequality over the promotion of real-estate investment. By framing speculative property gains as a threat to 'national unity,' the administration is positioning tax reform not just as a financial tool, but as a social necessity to prevent further polarization between homeowners and renters.
