President Lee Jae-myung on Tuesday ordered a review of measures to clearly define multi-homeowner criteria in legislation rather than presidential decrees, declaring that "provisions delegating multi-homeowner standards to enforcement decrees must be eliminated."
The move aims to redesign the entire system in line with the principle of statutory taxation to block property speculation altogether. President Lee reaffirmed his position to end the capital gains tax moratorium for multi-homeowners on May 9, stating, "If we fail to eradicate speculation this time, I cannot lead the remaining four years and several months of this administration," signaling that his government's fate hinges on the issue.
"We must fundamentally block the possibility that regulations will eventually be lifted for property transactions if people just hold out," President Lee emphasized at a Cabinet meeting held at Cheongwadae. "Korea's real estate problem has become a cancerous issue that completely blocks social development. The problem lies with decision-makers who failed to create proper policies and lacked the will."
Minister of the Interior and Safety Yoon Ho-joong noted that "the previous administration amended the enforcement decree at the end of May, retroactively applying it from May 9, the day of its inauguration," adding that "this can be seen as a case of giving multi-homeowners a gift like a commemorative item when the administration launched." The minister explained that "while tax rates for multi-homeowners are stipulated in law, who qualifies as a multi-homeowner is defined in enforcement decrees," effectively resulting in "tax cuts through enforcement decrees." He stressed the need to "move the multi-homeowner criteria from enforcement decrees to legislation for clear definition."
President Lee accepted this, saying, "Going forward, we should review the direction of defining provisions delegated to enforcement decrees in legislation."
However, Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-cheol raised practical concerns, stating, "Given time constraints, we should first adjust through enforcement decrees and then reorganize through legislation later." President Lee acknowledged, "Given the short timeframe, this supplementary measure has no choice but to proceed through enforcement decrees."
The government plans to give multi-homeowners sufficient time to sell by exempting from heavy taxation those who complete payment and registration within three to six months after signing contracts by May 9. President Lee drew a clear line, saying, "There will be no more extensions after this."
"The government is at fault for making people believe extensions were possible, so we will recognize contracts only this time," he explained.
President Lee also took aim at the myth of ever-rising property prices. "In our society, there is a myth built over decades regarding property investment and transactions," he said. "Many people and powerful figures have vested interests in this, making policy changes too easy." He added, "What national task could be more important than correcting the property speculation and unearned income republic in Korea? There is a high possibility this will continue until the bubble bursts."
"We must block it now to minimize damage," he urged Cabinet members. "We must design a system where holding out is disadvantageous. Can't we do this?"
President Lee repeatedly called for meticulous policy design. "Property desires are so intense that even a pinhole-sized gap can expand and cause a dam to collapse," he said. "It must be thorough to the point of perfection. 'Probably' won't work. Not even 0.1% room for error. Make it perfect."
When Deputy Prime Minister Koo reported that exceptions were being considered for properties difficult to sell due to existing tenants, President Lee said, "Review alternatives for such cases," but reiterated, "However, May 9 does not change."
Regarding opposition demands for government officials and presidential aides who own multiple homes to sell their properties, he said, "I think there is a problem." He added, "If I order someone to sell and they sell, it means the policy is ineffective. We must create a situation where they sell even if I beg them not to. Forcing sales through orders is meaningless."
Meanwhile, the Cabinet meeting deliberated and approved 18 bills for promulgation including the Semiconductor Special Act, along with 10 presidential decrees. The Semiconductor Special Act aims to designate semiconductor clusters to foster an innovative semiconductor industry ecosystem, with the national and local governments providing financial and administrative support. Also processed were amendments to the National Assembly Act allowing the Speaker to delegate authority during filibusters, and amendments to the Public Holidays Act redesignating Constitution Day as a public holiday to guarantee citizens' right to rest.
