Yoon Suk Yeol Hints at Further 부동산 Measures, Prioritizes Avoiding Tax Hikes

South Korean President Yoon Suk Yeol is signaling a willingness to deploy further measures to stabilize the country’s housing market, while simultaneously expressing a preference for avoiding direct intervention through tax policy. The comments, relayed by presidential officials, come as the administration navigates persistently high housing costs and a delicate economic landscape.

Lee Kyu-yeon, Senior Presidential Secretary for Public Communication, on February 13, 2026, described the President’s position as one of preparedness, stating that “proper policy cards have not yet been played, and there are many means available.” This suggests the administration is holding back more forceful interventions, reserving them for potential future use should market conditions deteriorate. The statement was made during an appearance on CBS radio’s “Park Seong-tae’s News Show.”

The Yoon administration has already implemented four rounds of housing policy since taking office, but has so far refrained from enacting sweeping changes to the tax code. Lee emphasized that even the recent decision to end the deferral of capital gains taxes on multiple homeownership was not a full-scale tax overhaul. “It was simply a discontinuation of the existing deferral, not a fundamental reform of the tax system,” he said.

Regarding lending regulations, Lee indicated that adjustments have been limited to specific “adjustment target areas,” and that no broad, nationwide changes have been implemented. This cautious approach suggests a desire to avoid disrupting the broader economy while addressing localized housing pressures. The President’s core message, according to Lee, is that the administration is prepared to utilize more drastic measures, including tax revisions – often referred to as the “last card” – if deemed necessary.

The administration’s approach to housing policy stands in contrast to that of the previous Moon Jae-in government, which pursued a strategy of increased regulation in an attempt to curb rising prices. Yoon Suk Yeol’s policy has been defined by “expanding housing supply” and “deregulation,” according to reports. This shift reflects a belief that increasing the availability of housing, rather than restricting demand, is the key to long-term affordability.

Kim Nam-joon, Presidential Spokesperson, further elaborated on the administration’s policy stance during an appearance on the JTBC YouTube program “Genre Only Yeouido.” He suggested that homeowners with multiple properties would be financially better off selling their assets in the current market. “If you calculate it coldly, It’s more profitable to sell now,” Kim stated.

When questioned about the possibility of increasing property taxes, Kim responded that taxation was a “last resort” and that the government hoped to avoid resorting to such measures. He also noted that there was a growing sentiment among presidential staff that selling their own multiple properties would be financially advantageous, though he clarified that no formal investigation into staff holdings was underway.

The administration’s reluctance to rely heavily on taxation is likely influenced by concerns about its potential impact on economic growth and family business succession. Recent proposals have focused on reducing the tax burden on middle-class homeowners and streamlining the inheritance process, recognizing that high inheritance taxes can hinder the smooth transfer of businesses between generations. According to data from the Ministry of Land, Infrastructure and Transport, housing prices in Seoul were 15.2 times higher than the average annual income in 2022, up from 14.1 times in 2021.

The current situation presents a complex challenge for the Yoon administration. While the desire to stimulate the housing market and reduce burdens on homeowners is clear, the potential for unintended consequences – such as increased speculation or market instability – remains a significant concern. The administration’s cautious approach reflects a recognition of these risks, and a commitment to exploring all available options before resorting to more drastic measures.

The government’s consideration of reforms to the real estate and inheritance tax system, as reported in June 2024, signals a broader effort to address economic challenges and boost the President’s approval ratings. However, any such reforms are likely to face opposition in the National Assembly, which is currently controlled by opposition parties. Director of National Policy Sung Tae-yoon has suggested abolishing the comprehensive real estate holding tax for most homeowners and reducing inheritance tax rates to a maximum of 30 percent, aligning Korea’s tax system with other OECD countries.

The designation of all 21 districts in Seoul as speculative zones in October 2025, coupled with stricter lending rules, demonstrates the government’s commitment to reining in rapidly rising housing prices. However, the effectiveness of these measures remains to be seen, and the administration is clearly preparing for the possibility that further intervention may be required.