President Yoon targets non-resident homeowners, foreseeing stricter tax and financial regulations
President Yoon Jae-myung expressed intentions to create conditions favoring sales over retention for investors and speculators owning one home for non-residential purposes.
On the night of the 26th, President Yoon Jae-myung highlighted his intent to address not only multi-homeowners but also individuals who own one home used for investment or speculation, emphasizing that the conditions will be made more favorable for selling rather than holding. Previously, he had stated that tax reductions for non-resident single-homeowners were inappropriate, but now he mentions more specific criteria, which raises interest in how policies will be implemented moving forward. In his post on X (formerly Twitter), he affirmed that while regular housing is to be actively protected, investment and speculation using housing will be fully restricted through careful regulation based on various factors such as occupancy status, number of homes owned, pricing levels, regulatory history, and regional characteristics.
This remark follows his focus on preventing multi-homeowners from profiting after the tax exemption for capital gains tax, applicable to multiple homeowners, expires on May 9. He reiterated that the government intends to create a scenario where selling becomes more beneficial than holding onto properties, warning that properties locked in will suffocate the market, leading to greater burdens for those who choose to hold onto them. Market analysts interpret these communications as a clear signal from President Yoon that he intends to prioritize policies concerning tax, finance, and regulation centered around 'primary residential homes'.
In a previous statement on the 23rd, he indicated a willingness to adjust tax reduction measures like the long-term holding special deduction for properties that are not used for residential purposes, suggesting that such deductions for investment or speculation purposes might be inappropriate. This latest statement confirms his intention not to apply a blanket approach to non-residential single-family homes, instead favoring a more nuanced system that allows for differentiated burdens based on multiple criteria.