The South Korean presidential office said Thursday it will announce a new housing supply plan as soon as possible to stabilize the real estate market.
This move comes as the government faces criticism over the burden of taxes on high-priced, non-residential, and multi-home properties, as well as ongoing struggles with rental shortages.
Presidential officials addressed the controversy surrounding the 8.3 tax reform plan, which was announced Aug. 3 [1]. The administration is attempting to decouple the concept of tax fairness from the goal of price suppression.
"The goal is to increase taxation equity, not to try to control house prices with taxes," said Seong Gi-hong, the presidential secretary for public communication [2].
Despite the focus on tax equity, the government acknowledged that taxation alone cannot resolve market instability. The administration believes that expanding the supply of homes is necessary to address the current housing crisis and mitigate the pressure on renters.
Addressing the timeline for new measures, a presidential spokesperson said the office will announce housing supply measures within the shortest possible timeframe [3].
The administration is navigating a complex landscape where high-end property owners feel unfairly targeted, while renters continue to struggle with availability and cost. By shifting the narrative toward equity and promising concrete supply increases, the government hopes to balance these competing interests.
“"The goal is to increase taxation equity, not to try to control house prices with taxes,"”
The South Korean government is attempting to pivot from a purely fiscal approach to real estate management. By framing the August 3 tax reforms as a matter of 'equity' rather than a tool for price control, the administration seeks to reduce political backlash from property owners while simultaneously addressing the root cause of price volatility through increased supply.
