On the 17th, President Yoon Seok-yeol mentioned the possibility of leveraging stronger real estate taxes as a 'last resort' during a government meeting at the Sejong Government Complex. He highlighted the need for increased taxes as a potential measure to stabilize the real estate market, equating tax measures to a 'nuclear bomb' in terms of their potency. Despite the severe implications, he urged relevant departments to prepare adequately for such a scenario if necessary.

Currently, the Ministry of Finance is examining various reform options for real estate taxation. The focal point is on the enhancement of the holding tax, which Yoon has frequently addressed in recent remarks, indicating a shift towards making ownership of multiple homes less advantageous financially. He has suggested that policies will be designed to make it more beneficial for owners, particularly those holding investment properties, to sell rather than retain their assets.

In addition to strengthening the holding tax, there are plans to reduce the long-term holding tax benefits for high-value homes, a policy that could potentially affect many homeowners. The Minister of Land, Infrastructure, and Transport recently commented on the disproportionate taxes paid by high-value property owners compared to average wage earners. The government aims to integrate insights from ongoing research and expert opinions to include comprehensive real estate tax reforms in the upcoming July tax amendment proposal, and they are also considering adjustments to property price assessments and market value ratios without requiring new legislation.