[Sejong = E-Daily Reporter Ha Sang-yeul ] Fiscal experts have leveled harsh criticism at the government’s “2026 Tax Reform Plan.” While the government shifted the focus of the real estate tax system from property ownership to actual residency under the banner of “fair taxation,” experts warn that forcing people to live in their properties will lead to adverse effects such as instability in the monthly rent and lease markets and tenant evictions.

◇Fair Taxation That Has Lost Its Way… Degenerating into a Punitive Wealth Tax

The Korean Fiscal Economics Association held an “Expert Roundtable on the Evaluation of the 2026 Tax Reform Plan” on the 5th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. The roundtable was moderated by Kim Woo-cheol, president of the association and a professor in the Department of Taxation at the University of Seoul. Panelists included Seong Myeong-jae, a professor in the Department of Economics at Hongik University; Song Heon-jae, a professor in the Department of Economics at the University of Seoul; Shim Hye-jeong, former Director of Tax Analysis at the National Assembly Budget and Policy Office; and Jeong Da-un, a research fellow at the Tax Research Division of the Korea Institute of Public Finance.

The experts criticized the government’s latest real estate tax reform plan, arguing that it had devolved into a “wealth tax” that solely targets owners of ultra-high-end homes.

Above all, there was persistent criticism that the very criteria for “fair taxation”—cited as the rationale for the reform—remain unclear. Former Director Shim Hye-jeong pointed out, “It is unclear whether the government’s stated goal of fairness is the redistribution of wealth or the stabilization of housing prices,” adding, “Korea’s Comprehensive Real Estate Tax imposes excessively high taxes on ultra-high-end homes compared to other countries and is moving decisively toward a wealth tax model.”

Questions were also raised regarding whether the Comprehensive Real Estate Tax actually serves to redistribute wealth. Professor Seong Myeong-jae pointed out, “A significant number of high-end homeowners are retirees in their 50s and 60s with no cash income,” adding, “Since the tax does not target the truly wealthy—those with substantial financial assets—it must be viewed as having no practical redistributive effect.” He further remarked, “It is merely a political ploy to soothe the resentment of the general public.”

Professor Song Heon-jae also criticized the tax for being levied uniformly without considering whether individuals have debt, stating, “If this were a true wealth tax, it should deduct interest paid by those who bought homes with loans to tax only net assets, and financial assets should also be taxed.”

◇“Taxes Can’t Control Housing Prices… Only Tenants Will Be Forced Out”

The very attempt to control real estate prices through taxation also drew criticism. Professor Seong stated, “You cannot curb housing prices with taxes,” adding, “The fundamental reason housing prices are rising is because supply and demand are out of balance.” In particular, he emphasized, “If tax benefits for non-residential properties are eliminated, the supply of private rental housing for those without homes will decrease, which will actually undermine housing stability for low-income residents.”

There were also significant concerns that tenants would be evicted as landlords are forced to move into their properties to avoid a “tax bomb.” Research Fellow Jeong Da-un warned, “If homeowners with properties valued between 2 and 3 billion won choose to live in their homes themselves to avoid the comprehensive real estate holding tax, the tenants who originally lived there will inevitably be evicted,” adding, “This will trigger a chain reaction that will destabilize prices in the jeonse market and even in the market for more affordable housing.”

Critics also pointed out that tightening the residency requirements hinders natural life changes such as marriage, childbirth, and job relocations. Professor Song analyzed, “There is a practical reason why people cannot sell their homes when moving—the transaction costs are simply too high—so they end up renting them out on a monthly or jeonse basis,” adding, “The government, which should be facilitating active migration to promote labor market flexibility and balanced regional development, is instead restricting it.”

Criticism was also raised that frequent tax reforms have made the tax system excessively complex and opaque, only serving to increase confusion among taxpayers. Kim Woo-cheol, president of the association, emphasized, “For the first time in 20 years, the core focus of tax law has shifted from ownership to residency, yet there was no sufficient discussion or social consensus.” He added, “The bad practice of real estate tax policies fluctuating wildly with every change in administration has repeated itself this time as well. A thorough review is necessary during the National Assembly’s deliberation process.”