▲ Seoul Mayor Oh Se-hoon
Seoul Mayor Oh Se-hoon issued a sharp critique today (June 22) regarding comments made by Kim Yong-beom, the Presidential Policy Chief, who described the current state of the Korean economy as an "all-time boom" and suggested adjustments to real estate taxation.
In a post on his Facebook page today titled "This is not a last resort, but a measure that should not be used," Mayor Oh stated, "As soon as the local elections concluded, the government has finally pulled out the card of strengthening property and capital gains taxes." He added, "They are determined to walk down the same failed path of trying to control housing prices solely through taxes while blocking supply."
He argued, "The Presidential Policy Chief claims that tax policies must be strengthened to prevent liquidity from the semiconductor boom from flowing into real estate, but he has fundamentally misdiagnosed the cause." He continued, "If funds are flowing into real estate, it is not because taxes are low, but due to anxiety over supply shortages, concentrated housing demand, and expectations for future value."
He emphasized, "What the government needs to do now is not to drop a 'tax bomb,' but to respond with robust supply to meet demand and the normalization of reconstruction and redevelopment projects."
Mayor Oh also dismissed the claim by National Tax Service Commissioner Lim Gwang-hyun—who suggested that providing selling opportunities to multi-home owners receiving tax benefits under the registered rental housing system would have the effect of supplying 68,000 apartments in Seoul—as a "misjudgment stemming from a lack of understanding of market conditions."
He stated, "This merely changes the ownership of existing homes and does not increase the total housing stock," adding, "Rather, if rental properties are converted to owner-occupied homes, rental listings will simply disappear from the market."
He further added, "The number of jeonse (long-term deposit rental) listings in Seoul has already decreased by more than 30% compared to last year. If tax burdens are added, landlords will withhold their properties from the market and pass the costs onto tenants, accelerating a monthly rent crisis that will only erode the disposable income of young people and the working class."
Mayor Oh urged, "Real estate policy is judged by its results. We clearly remember the disastrous failure during the past Moon Jae-in administration, which failed to control housing prices and drove tenants into a hellish jeonse crisis." He called for a shift, stating, "The government must break free from the dogma of suppressing the market with taxes and turn toward the realistic path of expanding supply."
He concluded by proposing, "Before full-scale discussions on tax reform begin, I request that the President listen to the opinions of the Seoul Metropolitan Government." He added, "I have no intention of engaging in political debate. Based on the accurate field data accumulated by Seoul City and the reality of declining jeonse supply, I will explain in detail the ripple effects that this tax reform will bring."
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.