Seoul: President Lee Jae Myung stated that the housing supply would increase and home prices would stabilize if owners of multiple homes sell registered rental houses in Seoul to avoid heavier tax burdens.
According to Yonhap News Agency, Lee addressed skepticism regarding his proposal to eliminate tax breaks for registered rental homes. This marks his third consecutive day of addressing the issue on social media as the government intensifies efforts to control rising housing prices in the Seoul metropolitan area. Lee posted a link on social media platform X, highlighting data that indicates, out of a total of 717,466 units nationwide registered as rental housing by individuals as of 2024, only 42,500 apartment units are located in Seoul.
Lee emphasized that the 42,500 apartment units in Seoul "are not a small amount at all." He suggested that if owners of multiple homes sell these units to avoid heavier capital gains taxes, it would contribute to stabilizing the housing market.
On Monday, Lee argued that it was unjust for registered rental landlords, who own and rent out multiple homes for profit, to continue receiving generous tax breaks. This is particularly pertinent as other owners of multiple homes are poised to face higher capital gains taxes once a temporary exemption expires in May.
Registered rental homes are governed by caps on rent increases and must provide tenants with a minimum rental period. Although tax incentives for the system were expanded in 2017, the apartment rental and short-term rental schemes were discontinued in 2020 amid criticism that they were being exploited as tax-avoidance tools by owners of multiple homes.