Homeowner tax break debate fuels market concerns

South Korean President Lee Jae Myung has reignited debate on the long-term holding tax deduction for homeowners, sparking market concerns. Lee questioned why capital gains from rising home prices should receive significant tax reductions simply because a property was held for a long time. He suggested a six-month grace period, followed by a partial reduction over another six months, and a full abolishment of relief after one year. The proposal has left the public confused, with speculation growing that the ruling bloc will scale back the deduction and strengthen property taxes after the June local elections. Critics argue that abolishing the deduction could discourage property listings, trigger resistance to taxation, and drive up rental prices. The tax deduction, introduced in 1989, has played a key role in supporting housing stability among middle- and lower-income households.