Lee vows policy measures to cut benefits of homeownership as speculation

President Lee Jae Myung speaks during a meeting with senior aides at Cheong Wa Dae in Seoul, Thursday. Yonhap

President Lee Jae Myung has said the government will come up with policy measures to reduce the benefits of homeownership as housing speculation, while actively protecting the rights of home buying for residential purposes.

The remarks by Lee were seen as the latest warning against housing speculation, as the government was set to end the temporary suspension of heavy capital gains taxes for multi-home owners in May.

On his social media account on X on Thursday night, Lee said the government will actively protect homeownership as an ordinary residence, but policy steps should be taken to prevent a home being used for housing speculation.

"(The government) will mobilize all available policy tools to create conditions in which selling, rather than holding, is more advantageous not only for multi-homeowners but also for single-homeowners who hold properties for investment or speculative purposes," Lee said.

"(The government) will actively protect ordinary residential use, while crafting (regulations) to tightly block housing-based investment and speculation," he added.

Lee outlined plans to apply customized regulations and burdens centered on properties actually used for residence, with different weights applied depending on whether a home is owner-occupied, the number of homes owned and the price level.

"Super luxury homes will face burdens and regulations comparable to those in the capital cities of advanced economies," he said.

Last month, Lee also signaled possible changes to tax breaks on long-term home holdings for owners who do not actually reside in the property. The scheme is designed to discourage short-term speculation by reducing taxable capital gains when a property is held for an extended period before sale.

He has repeatedly urged owners of multiple homes to sell their properties ahead of the planned expiration of the heavy capital gains tax exemptions, which are set to expire in May.