Koo Yun-cheol: Real estate tax reform aimed at market stability, not curbing home prices

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said Wednesday that "the Lee Jae Myung government does not use real estate tax policy to bring down home prices."

Koo made the remarks during a policy briefing to the National Assembly's Finance and Economy Planning Committee on Wednesday, responding to a question about whether President Lee Jae Myung's campaign pledge had been to stop using taxes to control home prices. The comments came ahead of a real estate tax reform package expected to be announced in early August. Koo said the overhaul was "aimed at normalizing transactions and stabilizing the real estate market."

He explained that the reform would offer tax benefits to owner-occupiers of a single home, while those who own multiple properties but live in only one would not receive tax incentives for the remaining units.

On President Lee's remarks about the need to triple property holding taxes, Koo said the statement should not be taken literally. "Please understand it as an example illustrating that holding taxes are low and need to be raised somewhat — not that they must be tripled exactly," he said.

Koo also said the government would proceed as planned with the capital gains tax on retail investors' virtual asset transactions, set to take effect in January.

Asked whether the tax could drive capital overseas, he said the current exemption runs only through the end of this year. "We will implement it next year and make any necessary adjustments along the way," he said.