President Lee Jae-myung Refutes 'Tax Bomb' Claim on Special Deduction Abolition as 'False Propaganda'

President Lee Jae-myung on the 18th refuted claims related to the abolition of the long-term holding special deduction (jangteukgongje) via SNS, calling them a 'logical contradiction and clear false propaganda.'

The President explained that the long-term holding special deduction is a system that significantly reduces capital gains tax based solely on the duration of ownership, regardless of residency. He noted that tax benefits for long-term residency exist separately. He pointed out that excessively reducing taxes on holdings for real estate speculation purposes goes against justice and common sense.

President Lee proposed a gradual and phased approach to abolishing the long-term holding special deduction to mitigate market shock. He argued that it should be stipulated by law to prevent the revival of the system. He added that the burden of owning investment or speculative real estate should be strengthened to developed country levels, excluding cases with legitimate holding purposes such as owning a single home for self-residency. President Lee stated that strengthening the burden on speculative and investment properties to developed country standards would inevitably lead to housing price normalization.

He added that unlike the past, when real estate was almost the only means of asset growth, excellent alternative means are now emerging.