President Lee Jae-myung on Tuesday clarified that homeowners who do not reside in their sole property for unavoidable reasons — such as job relocation or children's education — will be exempt from planned tax benefit reductions targeting investment and speculative purposes. The Presidential Office, however, drew a clear line on "children's education," limiting it to cases where leaving one's residence is unavoidable, such as college enrollment, and excluding moves driven by private tutoring or school district preferences.
Lee shared a media report on the status of non-resident single-homeowners on X (formerly Twitter), stressing that "it is obvious that cases of temporary non-residence for unavoidable reasons such as work — where the home is for residential use, not gap investment — are excluded."
The cited article described how non-resident single-homeowners in designated land transaction permit zones, who hold their properties due to unavoidable reasons like jobs and children's education rather than speculation, face a triple bind over home sales, jeonse (lump-sum deposit leases), and residency decisions.
Lee also pointed to the same article's citation of his earlier remark that "long-term holding tax deductions are not justified for non-resident single homes held for investment or speculation rather than residential purposes." He added, "Yet writing in the same article, 'What about people who temporarily cannot reside due to children's education, not speculation?' is a clear contradiction."
The remarks are interpreted as an effort to make clear that the Lee administration's property policies are not solely regulatory. His explicit mention of "unavoidable reasons" for non-resident single-homeowners aligns with his repeated call to "find careful solutions in resolving real estate issues," as stated at a Cabinet meeting on March 17. Observers note this follows the same approach seen when the government set May 9 as the deadline for the capital gains tax surcharge moratorium, yet extended the exemption to contracts signed on that date to allow sufficient time.
A senior Presidential Office official, however, drew a boundary regarding children's education: "Cases where a single-homeowner moves to jeonse or monthly rental housing to pursue private education or follow school districts for their children do not qualify." The official added, "It refers to literally unavoidable situations where one has no choice but to leave one's residence, such as for college enrollment."
Meanwhile, Lee had previously demanded a public correction of a March 28 report claiming the Presidential Office was reviewing measures to block promotions for multi-home-owning civil servants, calling it "a factually inaccurate report." This marks the second time the president has demanded a public correction, with both instances involving real estate policy coverage.