Controversy over taxing single-home owners who do not live in the home... academia criticizes property tax reform

The Korea Association of Public Finance held a roundtable of experts at the Korea Chamber of Commerce and Industry in Junggu, Seoul, to evaluate the 2026 tax reform proposal and discussed issues surrounding the government’s plan to strengthen property and transaction taxes. The participating public finance scholars said the reform is aimed at increasing the tax burden on nonowneroccupants who own a single home and owners of ultrahighpriced homes, and pointed out that it is unclear whether the policy objective is income redistribution or real estate stabilization. Some experts criticized the approach of varying capital gains tax deductions depending on whether the owner resides in the property, saying it may not align with fair taxation. There were also concerns that a reduction in ownershiprelated deductions could lead to a decrease in homes and rental listings, placing a burden on tenants’ housing. The academic community emphasized that it is difficult to expect stable housing prices from tax hikes alone, and that discussions on expanding supply and on the overall taxation system for assets are needed as well.