Real estate policies fuel housing anxiety and punitive taxation (KOR) Related Article Lee's approval rating falls for second consecutive week: Poll Property divide leaves more employed Koreans in their 30s living with parents Parliamentary speaker clarifies second term for sitting president 'not up for discussion' This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

The Lee Jae Myung administration has held five policy forums on housing supply, finance and taxation, promising to hear a wide range of views from the market. Yet the tax reform plan announced on Monday came down to one thing: higher taxes. President Lee's pledge that he would "not use taxes as a tool of housing policy" has vanished, as has the Presidential policy chief Kim Yong-beom's call to "shut up and just build" more homes. Instead of expanding supply and encouraging transactions, the government has shifted its focus to raising the long-term burden of property ownership and transactions. In the end, it is simply "shut up and just raise taxes." The government says it is normalizing property taxes, which are low compared to other major economies, while protecting genuine homebuyers. But the reality is different. The threshold for the comprehensive real estate tax on single-home owners has been raised from 1.2 billion won to 1.4 billion won ($839,500 to $979,5000) in assessed value, while the basic deduction for nonresident single-home owners has been cut from 1.2 billion won to 900 million won. At the same time, the cap on annual increases in the tax burden will rise from 150 percent to 200 percent, while the fair market value ratio will increase from 60 percent to 70 percent next year. The tax rate on ultrahigh-end homes will nearly double, while rates on homes in the 600 million to 1.2 billion won taxable value bracket will rise from 1 percent to 1.3 percent. The government is also making it harder to sell homes. Long-term capital gains deductions will be based more heavily on years of residence, while new limits will be imposed on the deduction. This runs counter to the basic principle of a functioning housing market: If property taxes rise, transaction taxes should be lowered to encourage homes to come onto the market. President Lee had also promised before taking office to expand inheritance-tax deductions so that people would not have to sell their longtime homes because of taxes. That pledge is absent from the latest plan. With neither transaction-tax relief nor expanded inheritance-tax deductions, homeowners will face heavier burdens when they own, sell or pass on their homes. The policy amounts to punitive taxation of homeowners. The consequences could be severe. The completion rate for Seoul apartments fell 58.4 percent in the first half of this year, while the average jeonse (lump-sum deposit) surpassed 700 million won. Regulatory side effects are spreading beyond southern Seoul into northern districts and the wider capital region, worsening rental-market pressures. The lessons of the Roh Moo-hyun and Moon Jae-in administrations are clear: Housing markets cannot be stabilized by taxes alone. Higher costs will eventually be passed on to tenants. The solution is equally clear. If property taxes are raised, transaction taxes must be boldly cut. Reconstruction and redevelopment should be encouraged, and housing supply expanded. Only a steady stream of new homes can restore the hope of homeownership, stabilize prices and normalize the market. By trying to overpower the market, the government is leaving ordinary citizens to bear the burden of a tax bomb. 집값 불안 키운 부동산 정책, 징벌적 과세만 더 강화했다 이재명 정부는 공급·금융·세제 등을 주제로 다섯 차례 부동산 정책 토론회를 열며 시장의 다양한 의견을 듣겠다고 했다. 그러나 정부가 3일 발표한 세제개편안의 결론은 결국 증세였다. "세금을 주택 정책의 수단으로 쓰지 않겠다"던 이재명 대통령의 약속도, "닥치고 공급"을 강조했던 김용범 청와대 정책실장의 호언장담도 자취를 감췄다. 정책의 무게중심은 공급 확대나 거래 활성화가 아니라 장기적인 보유세·거래세 부담 확대에 쏠렸다. 남은 것은 결국 '닥치고 증세'뿐이다. 정부는 주요국보다 낮은 보유세를 정상화하고 실수요자를 배려한 정책이라고 설명하지만 현실과는 거리가 멀다. 1세대 1주택자의 종부세 과세 기준은 공시가격 12억원에서 14억원으로 높였지만, 비거주 1주택자의 기본공제는 12억원에서 9억원으로 낮췄다. 보유보다 거주를 중시하는 방향으로 세제를 바꾸겠다는 취지다. 그러나 동시에 종부세 세부담 상한은 직전 연도 세액의 150%에서 200%로 크게 높이고, 종부세 공정시장가액 비율도 현행 60%에서 내년 70%로 인상한다. 과세표준 12억원(시가 약 45억원) 이상 초고가 주택은 종부세율이 현행보다 두 배 수준으로 높아지고, 과세표준 6억~12억원 구간의 중산층 주택도 세율이 1%에서 1.3%로 오른다. 정부는 부동산 거래의 퇴로도 막고 있다. 양도소득세 장기보유특별공제는 보유 기간 공제를 없애고 거주 기간 중심으로 바꾸는 데 그치지 않고, 기존 장기거주특별공제를 폐지하는 대신 장기거주소득공제를 신설했다. 장기...