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President Lee Jae-myung has firmly stated there will be no further extensions to the tax deferral program for multiple homeowners, set to expire on May 9. however, the management indicated a willingness to consider a postponement of the contract portion of the measure.
Speaking via social media today (January 25th), President Lee addressed reports of turmoil in the real estate market ahead of the program’s expiration, asserting, “There is no government that can beat the market, but there is also no market that can beat the government.”
No Revisions Planned for Tax Deferral
The president drew a parallel to a previous commercial law revision, stating, “Companies and the country made a fuss and resisted the revision of the commercial law for normalization as if it were going to ruin, but once the revision was made, didn’t companies, the country, and society all improve?” He acknowledged potential pain and resistance in shifting away from a real estate-driven economy, but maintained that necessary changes shouldn’t be avoided.
A Limited Adjustment is Possible
However, President Lee conceded that the government may have inadvertently led people to believe the postponement would continue for another four years. He stated that the Cabinet will discuss deferring the heavy taxation for contracts signed before May 9.
The temporary system, introduced by the previous administration, aimed to stimulate housing transactions by exempting multiple homeowners from heavy transfer taxes when selling properties.
On January 23rd, President Lee had already indicated he was not considering an extension of the transfer tax exemption for multiple homeowners.
