President Lee Jae-myung has declared an all-out war on real estate speculation, vowing to mobilize every available tool—including taxation, finance, and regulation—to normalize the housing market. In a stern warning, he emphasized that the government will create a professional environment where "holding on to properties will be more costly than selling them."
The "May 9 Deadline": No More Deferrals
During a senior aides' meeting at the Blue House on the 26th and in a subsequent social media post on the 27th, President Lee underscored the importance of policy consistency. The central focus is the upcoming expiration of the capital gains tax surcharge waiver for multi-homeowners, set for May 9, 2026.
"We cannot allow a situation where those who trusted the government and sold their properties feel like fools, while those who held out until the end reap the benefits," Lee stated. He warned that after May 9, multi-homeowners who refuse to sell will face such intense financial and tax pressures that they will find it "more profitable to sell even with heavy taxes than to continue holding."
Targeting "Speculative Single-Homeowners" and Ultra-Luxury Estates
A significant shift in policy involves the crackdown on speculative single-homeowners. President Lee indicated that even owners of a single home, if held for investment rather than residence, will face regulations making disposal more attractive than ownership.
Furthermore, ultra-high-priced properties—particularly in premium districts—will be subject to "burdens and regulations comparable to those in the capitals of major advanced nations." This move is seen as an effort to curb the "one smart house" phenomenon, where investors pour capital into a single high-value asset to avoid multi-homeowner penalties.
"Precision Design" to Protect Actual Residents
The administration plans to implement a sophisticated weighting system to differentiate between genuine residents and speculators:
Residency & Portfolio Size: Strong protection for those living in their only home, with escalating penalties for non-residential properties.
Regional & Price Calibration: Taxes and regulations will be finely tuned based on regional market trends and property values.
Market Liquidity: By stating that "locked-up listings will be suffocated," the President signaled a relentless push to force supply back into the market.
President Lee concluded by stating that he is prepared to endure political backlash to stop "nation-ruining speculation." He reaffirmed that the core of "normalizing South Korea" is ensuring that those who follow the rules and government policies do not suffer, while those who defy them find no profit.
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