President Lee Jae-myung Calls for 'Normalization of Tax System' as Debate on Abolishing Heavy Taxation on Multi-Homeowners Heats Up

President Lee Jae-myung stated on the 4th at a cabinet meeting at the Blue House regarding real estate capital gains taxation, "If the tax system is not normalized, issues of equity arise." President Lee said at the meeting, "Even when real estate capital gains reach 10 billion won, taxes amount to only a few hundred million won, yet cases involving buying for investment and earning several billion won pay almost no tax, which lacks equity with earned income." He added that the current capital gains tax system does not align with the intent of protecting housing and instead results in protecting real estate speculation and investment.

Regarding the controversy over easing heavy taxation on multi-homeowners, he rebutted, "Claims that there is no policy consistency are not true." President Lee explained that the measure for multi-homeowners did not abolish the heavy tax but rather lowered it by half, noting that it opened a way out during the process of phasing it up.

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol explained the plan to adjust the heavy tax rate for capital gains on multiple homes. President Lee urged Deputy Prime Minister Koo to fully explain the policy to prevent misunderstandings. He emphasized, "Government policy must be executed resolutely once decided, while decisions are made carefully, to build trust."