South Korea Plans 30% Tax Surge on Property Hoarders, President Calls on Speculators to Sell

South Korea's President Lee Jae-myung issued an unusually stark public warning on February 3, targeting domestic property speculators ahead of impending tax increases. The president urged multiple-property owners to "carefully consider the blood and tears of millions of young people" priced out of the housing market, calling on them to seize their final opportunity to sell before the government implements higher property taxes.

According toBloomberg, Lee's social media posts in response to Seoul apartment prices rising for the 52nd consecutive week - despite previous government efforts to curb speculation through mortgage lending restrictions - carried an unusually confrontational tone.

"Money is the devil—have you truly lost your most basic conscience to evil?" he wrote. 

As a leader who campaigned on housing justice promises, Lee directly challenged speculators. The president argued that soaring housing costs are forcing youth to abandon marriage and childbearing plans, fundamentally threatening social resilience.​

"Don't you see the millions of young people shedding blood and tears because of the price surge you've caused?"

May Deadline Looms

South Korea plans to impose significantly higher capital gains taxes on multiple-property holders starting in May. Under current proposals, owners of two properties in designated hot zones face an additional 20% tax rate, while those holding three or more properties face a 30% surcharge.

Lee expressed confidence in these measures, stating in his posts that the government possesses numerous policy tools beyond taxation to suppress housing prices. He warned property hoarders that "selling early is better than selling late, and selling is better than holding."

Market anxiety is already evident, with reports of properties in Incheon's Gaepo-dong district being offered at 400 million won (approximately NT$8.75 million) below market value.

​Latest reports indicate Seoul authorities are considering May 9 as a crucial deadline. Property purchase contracts signed before this date would receive a 3-6 month grace period for completing transfers, exempting buyers from the incoming higher capital gains taxes.

Despite Lee's forceful rhetoric aimed at rallying supporter backing, Gallup Korea polling reveals 40% of respondents express disappointment with current housing policies, citing their failure to meaningfully reduce prices and overly restrictive lending conditions. The survey shows 40% disapprove of Lee's housing approach, while only 26% express support. Nearly half of respondents expect housing prices to continue rising over the next year, with just 19% anticipating declines.

Additionally, only 4 of 23 key legislative proposals designed to supply 270,000 housing units annually have passed the National Assembly, leaving the majority of promised reforms stalled in parliamentary proceedings.

Opposition parties have criticized the president's public intervention as blatant intimidation of citizens, with some mockingly asking whether he's "learning from Trump's playbook." The Blue House defended Lee's approach as direct communication, demonstrating a determination to tackle housing speculation differently from previous administrations.

Real estate policy remains among South Korea's most politically sensitive economic issues. Many observers believe housing price surges during former liberal President Moon Jae-in's tenure ultimately paved the way for conservative political resurgence. Lee emphasized that this campaign serves the broader public interest in rebuilding housing market fairness: "To create a rational and prosperous nation, we will terminate this destructive real estate speculation 'at all costs.'" （Related： Japan's ¥3 Trillion Hydrogen Bet—and the High-Stakes Logic Behind It ｜ Latest ）