[Edaily Reporter Hwang Byeong Seo ] President Lee Jae-myung said on the 4th, “When various surcharges are added, the income tax rate can reach as high as 49.5%, but even if capital gains from real estate reach the 10 billion won range, the tax amount is only a few hundred million won.”

Speaking at a Cabinet meeting he presided over at the Blue House that day, President Lee said, “If someone happened to end up in that situation through no fault of their own, it’s appropriate to grant a tax break; however, if someone buys property for investment purposes and earns tens of billions of won while paying almost no tax, it’s far too inequitable compared to workers’ earned income.” President Lee’s mention of the real estate tax system is interpreted as raising the issue of tax equity between real estate assets and earned income while emphasizing the need to normalize the market—a move seen as an attempt to directly confront fierce criticism from the opposition and others.

President Lee also emphasized regarding the current capital gains tax, “It does not align with the purpose of protecting housing. It effectively protects real estate investment and speculation,” adding, “Many people believe that adjustments need to be made.” He continued, “Talking to the public about taxes is difficult even from the government’s perspective. It’s not a popular topic either,” but added, “However, if the tax system is not normalized, issues of equity will arise.”

Earlier, upon his return to the country on the 3rd, President Lee immediately convened a meeting to review the real estate and stock markets, where he also emphasized the issue of supply. President Lee stressed, “The slump in housing supply that has persisted since 2022 has led to a ‘supply cliff,’” adding, “To overcome this, supply and the pace of supply are crucial.” President Lee instructed relevant ministries to conduct a comprehensive review of existing supply measures and to devise plans to accelerate the pace of supply by mobilizing all available means, including financial, fiscal, and regulatory easing. He also requested additional reports and follow-up meetings regarding financial and housing supply within the next two to three days.

Although President Lee emphasized expanding housing supply and implementing policies with a sense of urgency, criticism—particularly from the opposition—has emerged regarding the direction of tax reform. Seoul Mayor Oh Se-hoon pointed out on Facebook that day, “The government has long emphasized ‘expanding supply,’” but added, “However, looking at these measures, there are no actual plans to increase supply; they’ve only strengthened taxes.”

Mayor Oh noted, “The President stated that ‘the goal is not to lower housing prices but to normalize the real estate market,’” but emphasized, “If that is the case, the solution must also align with market principles. The surest way to stabilize the market is not through taxes, but through supply.” He continued, “We must no longer attempt to manipulate the market through taxes,” adding, “Even now, we must move away from stopgap tax measures and shift toward a fundamental real estate policy centered on supply.” In particular, housing supply in Seoul is intertwined with the city’s authority over projects such as reconstruction and redevelopment, making policy coordination between the central government and the Seoul Metropolitan Government a key variable moving forward.

Meanwhile, following his overseas trip, President Lee is accelerating his administration’s second-year agenda by personally overseeing briefings from the Ministry of Trade, Industry and Energy and the Ministry of Employment and Labor, among others, on key issues affecting people’s livelihoods, such as the real estate and stock markets.