Lee Hyung-il defends non-resident home ownership, says Gwacheon apartment being demolished in reconstruction

Lee Hyung-il, nominee for deputy prime minister and minister of economy and finance, defended his ownership of a non-resident home Thursday, saying his Gwacheon apartment is currently being demolished as part of a reconstruction project. The explanation came in response to criticism that the holding contradicts his stated policy of imposing heavier tax burdens on non-resident homeowners.

Speaking to reporters on his way into the Korea Deposit Insurance Corp. building in Jung-gu, Seoul, Lee said his position on differentiating tax burdens between resident and non-resident homeowners reflects "a firm directional principle aimed at establishing a residence-centered housing market."

Pressed on the apparent contradiction between that principle and his ownership of a non-resident property in Gwacheon, Lee said, "The Gwacheon apartment I own is currently undergoing reconstruction and is in the process of being demolished. I would appreciate your understanding of that situation."

When reporters asked whether he had been renting out the apartment on a jeonse basis since 2021 — given that the reconstruction relocation began in 2025 — Lee replied "yes," adding that he would provide details at his confirmation hearing. Asked why and when he purchased the apartment, he said only that he had bought it "quite a long time ago" and would address the specifics at the hearing.

Lee had also outlined his policy direction on differentiating tax burdens between resident and non-resident homeowners at his first press briefing, held Wednesday at Government Complex Sejong.

The Cabinet approved Tuesday a revised proposal adjusting the basic deduction for the comprehensive real estate tax on non-resident single-home owners from 900 million won ($657,000) — the amount in the original amendment — back to the current level of 1.2 billion won. Lee said the change reflected widespread market feedback that "the gap between residents and non-residents was a bit excessive," but stressed that the government would maintain the principle of differentiation, saying a residence-centered housing market remains "a consistent direction the government has in mind."

Some members of the ruling party have called for unifying the comprehensive real estate tax deduction for both resident and non-resident homeowners at 1.4 billion won. Lee left open the possibility of further revisions, saying Wednesday that if the National Assembly takes up specific discussions, "we plan to reflect reasonable elements where necessary."

On Thursday, reporters also asked whether the government and ruling party had consulted on delaying the abolition of the long-term holding special deduction and raising the non-resident comprehensive real estate tax deduction to 1.4 billion won. Lee said the revised proposal that cleared the Cabinet had already been drawn up through consultations based on improvement ideas offered by the Democratic Party, and pledged to "continue communicating and consulting going forward."