Presidential policy chief hints at property tax hikes to stabilize housing market

▲ Kim Yong-beom, presidential chief of staff for policy, speaks during an interview with financial YouTube channel 3PROTV, in this photo provided by the presidential office on Oct. 15, 2025. (PHOTO NOT FOR SALE) (Yonhap)

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Presidential policy chief hints at property tax hikes to stabilize housing market

By Kim Eun-jung

SEOUL, Oct. 15 (Yonhap) -- Presidential chief of staff for policy Kim Yong-beom said Wednesday the government needs to conduct a comprehensive review of real estate taxation, including property holding taxes, as part of efforts to stabilize the housing market.

Kim made such a remark as the government announced a package of measures to curb a renewed surge in home prices in Seoul and parts of the surrounding Gyeonggi Province, including the designation of all Seoul districts as speculative zones and the introduction of stricter lending regulations.

"It is true that the (current) property holding tax (level) is low," Kim said in an interview with 3PROTV, a YouTube channel specializing in financial news. "We need to seriously review the overall tax system related to housing acquisition, ownership and transactions."

Kim characterized the possibility of property holding tax hikes as a "rationalization of real estate taxation," hinting a balanced approach that would raise property holding taxes while encouraging more housing transactions.

"Policies for real estate stability and housing welfare must encompass both taxation and supply," Kim said, noting that South Korea's tax burden remains low compared with the global average.

The proposal marks a shift from President Lee Jae Myung's campaign pledge to refrain from relying on tax hikes as a primary tool for housing market stabilization.

On trade issues, Kim said South Korea aims to make a breakthrough in the ongoing trade negotiations with the United States before the Asia-Pacific Economic Cooperation (APEC) summit to be held in the southeastern city of Gyeongju later this month.

U.S. President Donald Trump is widely expected to attend APEC events, which could provide an opportunity for his bilateral talks with Lee.

"There isn't a specific deadline, but since opportunities for the two leaders to meet don't come often, the APEC summit is effectively our main goal (of the trade deal)," Kim said.

Kim is scheduled to depart for Washington on Thursday with Industry Minister Kim Jung-kwan for follow-up talks with Washington officials, including U.S. Commerce Secretary Howard Lutnick, with discussions expected to focus on the details of South Korea's US$350 billion investment package.

He said the upcoming talks follow a "meaningful response" from the U.S. over the past two weeks regarding Seoul's revised proposal, noting that Washington had submitted a "meaningful alternative" to the Korean side.

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