'Wealth keeps concentrating in Greater Seoul apartments because capital gains go nearly untaxed,' says Ulsan mayor

Ulsan Mayor Kim Sang-uk voiced support for the government's contentious tax reform package, saying that while residents of Seoul and the greater metropolitan area "are bound to be more sensitive," the plan is "the right direction even if there is resistance."

Kim made the remarks Tuesday on his YouTube channel "Kim Sang-uk TV — The Mayor Who Reads the News," laying out his reading of the reform: "The basic idea is to tax non-residents and to raise taxes on people who own high-priced apartments and are making profits from them."

He illustrated the problem with a personal example. "When I work hard, taxes are taken. When I invest, taxes are taken. But if I buy a 2 billion won house and it rises to 9 billion won, I've made 7 billion won and paid almost no tax along the way," he said. "That is why whenever wealth is created in this country, it all concentrates further into apartments in the greater metropolitan area. People come to see it as a stable investment where their assets grow even while they live there — without the tax burden rising to match."

He warned that if the situation continues, new money in the economy will flow into Greater Seoul apartments rather than into industrial or public investment for the future. "That widens the wealth gap further, and young people fall into despair, saying they can't afford a single home no matter how hard they work," he said. "They lose the will to work, and the engine of industry weakens."

"That is why it's called the nation-ruining disease of real estate," he said. "We have to get rid of it."

Kim also questioned the logic of exempting property gains from taxation. "Common sense says you don't pay tax if you've taken a loss — but how can there be no tax when you've made income at the point of sale?" he said. "Shouldn't high-priced apartments naturally be taxed? Shouldn't they naturally pay a holding tax? Are people using public infrastructure for free?"

He also flagged concerns about the growing list of exemptions to the owner-occupancy requirement — covering cases such as schooling, job changes, transfers, illness, caring for parents and overseas residence, which can waive the requirement for up to three years. "The exceptional cases keep multiplying, so things have gotten complicated to begin with," he said. "The principle itself risks being undermined. This is becoming a considerably tangled situation."

Kim doubled down on the need to press ahead regardless. "Naturally, people who own high-priced homes in Seoul and the greater metropolitan area will be unhappy — but a principle is a principle, and what needs to be done must be done, even if it draws criticism," he said.

Offering what he described as his personal view, Kim added that if real estate taxation is not corrected this time, "it will be very hard to get another chance." "This is a moment when Korea can reap major gains from semiconductors and use them as a driver of future growth, the president is capable, and we have a once-in-a-generation opportunity," he said. "We have to act now."