South Korea Reviews Property Tax Changes Ahead of Lee-Led Housing Debate on July 23

South Korea has begun reviewing ways to overhaul its real-estate tax system, including property holding and transaction taxes. President Lee Jae-myung will chair a public debate on the broader housing policy framework, including supply, lending and taxation.

Kim Yong-beom, the presidential chief of staff for policy, told a briefing at the presidential office on July 10 that the government is examining “reasonable improvement measures” for the overall tax system, including holding and transaction taxes, based on policy research and overseas cases.

Lee will chair a public debate on July 23 covering the full range of housing policy, including supply, finance and taxation. Ahead of that, the government will hold issue-specific public forums from July 14 to July 16 under the Ministry of Land, Infrastructure and Transport, the Financial Services Commission and the Ministry of Finance and Economy. The July 14 session will focus on supply, July 15 on finance and July 16 on taxation. The government plans to gather views from experts and the public before a broader discussion of housing policy direction at the presidential forum.

Public concern over the property market has been growing, Kim said, adding that housing is the issue most directly tied to people’s lives.

Many people are feeling the strain and anxiety tied to home prices, jeonse and monthly rents, loans and the cost of buying a home. The government is taking current market conditions seriously.

The government said it would stick to its principles of expanding supply and stabilizing the market. Supply plans are moving ahead without disruption, Kim said. It is also taking market-stabilization steps where needed in areas showing signs of overheating, citing recent designations of land transaction permit zones in Dongtan, Giheung and Guri.

Discussion of tax changes is also set to pick up. Because the government mentioned both holding and transaction taxes, a broad range of property-related levies could be considered, including the comprehensive real estate holding tax, property tax, acquisition tax and capital gains tax.

Housing policy cannot be completed by government judgment alone, Kim said. Market conditions keep changing, and the difficulties people experience vary widely.

What is needed now is not for the government to present one-sided answers, but for the public and experts to build solutions together, he said. The government will listen more closely to voices from the field and actively accept better alternatives.

Lee Song-ryeol, Hankyung.com reporter yisr0203@hankyung.com