President Lee vows to end the 'republic of unearned real estate income'...reiterates end of capital gains tax relief for multiple-home owners

According to The Financial News, President Lee Jae-myung on the 25th addressed the end of the temporary suspension of higher capital gains tax rates for multiple-home owners, stating, "If anyone thought we would amend the law again to extend it, they were mistaken," making it clear once more that there will be no further extensions.
President Lee wrote on his social networking service (SNS) account that "the Republic of Korea is returning to a normal society where policies are predictable," adding, "No government can defeat the market, but no market can defeat the government either."
President Lee explained that the May 9 end date this year for the temporary suspension of higher capital gains tax on multiple-home owners "was already decided in February last year." He continued, "If anyone assumed we would once again amend the law to extend it, they were wrong. We must abolish unfair benefits arising from abnormal policies, even if it is difficult." He went on to say, "Abnormal holding out should not be rewarded," and stressed, "There are plenty of ways to restore normalcy."
In particular, President Lee referred to the amendment of the Commercial Act of the Republic of Korea, which is widely credited with contributing significantly to achieving the pledge of pushing the Korea Composite Stock Price Index (KOSPI) to 5,000 points.
He recalled, "When we pushed for amendments to the Commercial Act of the Republic of Korea in the name of normalization, businesses and even the country were said to be on the brink of collapse, and there was an uproar of resistance. But once the law was actually revised, both companies and our national community improved, did they not?" He then emphasized, "Escaping a republic built on unearned real estate income, which has driven us toward a 'lost 30 years,' will also involve much pain and resistance. But if a measure is necessary and useful, we must not shy away from it."
He added, "When you are seriously ill, surgery is painful and costly, but it still has to be done. If we endure a short period of pain, we will become healthier and earn more money in the long run."
At the same time, he indicated that the heavier tax rate would remain suspended for transactions concluded by the already announced deadline. President Lee said, "The government is also at fault for having led people to believe over the past four years that the suspension would be repeatedly extended, so I will discuss at the State Council allowing the suspension of the higher tax rate for contracts signed up to May 9 this year."
Earlier, on the 23rd, President Lee had already stated on SNS that he was "not considering at all" any extension of the exemption from higher capital gains tax for multiple-home owners, which is set to expire on May 9. The system was introduced under the previous administration to temporarily exempt multiple-home owners from the additional capital gains tax imposed on home sales, with the stated aim of revitalizing housing transactions. Some observers had focused on whether the government would extend the measure beyond its May expiration this year, but President Lee drew a clear line, declaring that he would not grant another reprieve and would instead abolish the system.
cjk@fnnews.com Reporter Choi Jong-geun Reporter