President Lee Jae-myung hosts a 100-minute Real Estate Policy National Forum on the 23rd at 10am, ahead of the government's preparation of additional real estate measures. The forum addresses property tax reform focused on ultra-high-value and non-residential homes, and potential easing of loan regulations for real buyers. According to the Blue House, 140 participants attend including YouTubers, real estate and parenting cafe members, civic groups, real estate agents, financial workers, journalists, and professors. Government attendees include Prime Minister Han Sung-sook, Deputy Prime Minister and Finance Minister Gu Yoon-chul, Minister of Interior and Safety Yoon Ho-jung, Minister of Land, Infrastructure and Transport Kim Yun-deok, and Financial Services Commission Chairman Lee Eok-won. The forum takes place as the government prepares to announce final measures by the end of the month.
President Lee Convenes 140-Member Forum on Property Tax and Loan Rules
The forum begins with President Lee's opening remarks, followed by a presentation of pre-collected public feedback by Finance Ministry First Vice Minister Lee Hyung-il. Professor Jin Mi-yoon of Myongji University presents on housing supply, Senior Research Fellow Kim Young-do of the Korea Institute of Finance covers financial sector issues, and Professor Kang Sung-hoon of Hanyang University addresses tax policy.
President Lee previously outlined key discussion topics via X (formerly Twitter): appropriate property tax levels, differential taxation for residential versus non-residential and ultra-high-value homes, the relationship between property and transaction taxes, and utilization of property tax revenue.
Government Reviews Property Tax Reform for Ultra-High-Value and Non-Residential Homes
Observers inside and outside the government note potential consideration of increased property tax burdens for ultra-high-value single-home owners and non-residential single-home owners, while protecting mid-to-low-priced single-home owners with residential purposes. Alongside property tax strengthening, temporary suspension of capital gains tax reinforcement measures or reduction of transaction tax burdens to activate trading are mentioned as discussion subjects.
Blue House Policy Chief Kim Yong-beom emphasized that no tax reform direction has been finalized, stating "This is not a formality where we listen to opinions with conclusions already set."
Public Feedback Shows 975 Requests for Loan Regulation Easing
Loan regulations constitute a core issue alongside taxation. During the pre-forum opinion collection process, requests for loan regulation easing concentrated among lottery winners, homeless real buyers, and single-home residential hopefuls. Of 1,024 financial sector opinions, 975 requested loan regulation easing while 20 requested tightening.
By type, opinions requesting easing of loan limits such as loan-to-value (LTV) ratios and banking sector household loan volume regulations were most numerous. Multiple requests called for restoration of special loans for public pre-application lotteries and exclusion of lottery winners' balance payments from volume regulations.
One petitioner stated "I won the lottery and paid all intermediate payments, but sudden volume regulations prevent me from receiving balance loans and risk contract cancellation," appealing that individuals should not bear losses from policy changes. Requests continued for easing of lease eviction fund loans and reconstruction/redevelopment relocation cost loans, and for not retroactively applying new regulations to existing contract holders.
Housing Supply and Regional Development on Forum Agenda
In the supply sector, activation of Seoul reconstruction and redevelopment, new housing supply in the metropolitan area, and expansion of supply centered on preferred regions are anticipated discussion topics. However, assessments suggest the substantive focus of follow-up measures announced after the forum will likely rest on tax reform including property taxes and loan regulation supplementation.
Government Plans Final Policy Announcement by End of Month
The government plans to reflect the forum results in tax reform proposals and follow-up measures for financial and supply sectors, then announce the final plan as early as the end of the month.
FAQ
What topics does President Lee's real estate forum on the 23rd address?
The forum addresses property tax reform focused on ultra-high-value and non-residential homes, potential easing of loan regulations for real buyers, and housing supply expansion. President Lee previously outlined key discussion points including appropriate property tax levels, differential taxation for residential versus non-residential and ultra-high-value homes, the relationship between property and transaction taxes, and utilization of property tax revenue.
How many public opinions requested loan regulation easing during pre-forum feedback collection?
Of 1,024 financial sector opinions collected before the forum, 975 requested loan regulation easing while 20 requested tightening. By type, opinions requesting easing of loan limits such as loan-to-value (LTV) ratios and banking sector household loan volume regulations were most numerous, with multiple requests for restoration of special loans for public pre-application lotteries and exclusion of lottery winners' balance payments from volume regulations.
