![President Lee Jae Myung speaks during a Cabinet meeting at Cheong Wa Dae on Tuesday. [Yonhap]](https://wimg.heraldcorp.com/news/cms/2026/07/14/rcv.YNA.20260714.PYH2026071405230001300_P1.jpg)
President Lee Jae Myung expressed caution Tuesday about raising the property tax burden on ultra-expensive homes with an actual transaction price of 2 billion won ($1.33 million), saying, "If we do that, I think we're in big trouble."
Lee made the remarks while presiding over the 30th Cabinet meeting at Cheong Wa Dae, saying a threshold of 3 billion won "is too harsh." "At 3 billion won in actual transaction price, isn't that only in the low tens of billions of won under the current assessed value standard?" he said.
In an unusual move, Lee also sought public input during the meeting through a live chat on a YouTube channel broadcasting the session.
He asked viewers to weigh in on whether ultra-expensive homes should face a heavier property tax burden than ordinary homes. "If you think ultra-expensive homes should bear a differentiated, additional holding tax, press 1; if not, press 2," he said, instructing officials to monitor the ratio of responses over one to two minutes.
Viewers of the live broadcast on KTV and the "Lee Jae Myung TV" YouTube channel responded in real time through the chat window.
Lee also said that real estate tax policy is not primarily about suppressing home prices. "That may be a secondary effect," he said, "but in South Korea's real estate tax system, equitable taxation is what matters most — and the housing sector has seen its tax regime heavily altered and distorted."
He added that excessive exemptions and deductions had stripped the tax system of its basic function. "Because it can no longer perform its basic function, it becomes a driver of real estate speculation," he said. "Normalization is needed."
Lee said again that using taxes to push down home prices is not the primary goal. "Normalization is the primary goal. The secondary goal is to ease the side effect of fueling speculation — I want that point kept in mind," he said.
Lee then asked Im Gi-geun, head of the Office for Government Policy Coordination, to report on the chat results. Im said most responses had chosen option 1, and Lee said there appeared to be broad agreement that property taxes on ultra-expensive homes should be strengthened even for owner-occupiers with a single home.
Lee then proposed a second poll, asking viewers to comment with "1" for a 1 billion won threshold, "2" for 2 billion won or "3" for 3 billion won.
After checking the live comments, Im reported that most responses pointed to 3 billion won. Lee pushed back, calling that figure "too harsh." "At 3 billion won in actual transaction price, isn't that only in the low tens of billions of won under the current assessed value standard — the taxable base?" he said.
He added that he had expected 5 billion won to draw the most support, calling the result "unexpected."
When Kim Yong-beom, the Cheong Wa Dae policy chief, said "2 billion won is also a lot," Lee responded, "If we do that — impose a heavier tax on 2 billion won homes — I think we're in big trouble." The remark reflected his reluctance to set the ultra-expensive home threshold at 2 billion won.
Im said that while many people watch the Cabinet meeting, they do not represent the majority of citizens, and that ministries would conduct broader public consultations.
moone@heraldcorp.com
