Multi-Home Owning Officials Excluded from All Real Estate Policy Processes

President Lee Jae-myung ordered on the 22nd via X (formerly Twitter) to completely block public officials who own multiple homes from all stages of real estate policy discussions, drafting, reporting, and approval processes.

President Lee emphasized that "officials who created policies that drove up housing prices are the problem," stating "isn't it appropriate to exclude them from housing and real estate policies from now on?" He clearly demonstrated his commitment to enhancing policy credibility by defining housing price stability as "a matter on which the success or failure of this administration depends."

This measure is interpreted as a preemptive move to block potential conflicts of interest where officials with excessive real estate holdings might consider their personal interests during policy decision-making processes.

Comprehensive Investigation into Business Loan Misuse for Real Estate

The Lee Jae-myung administration's real estate speculation suppression stance is being strengthened daily. On the 21st, the previous day, the government continued warnings of criminal prosecution for cases of individuals misusing business loans for home purchases.

According to analysis results announced by the National Tax Service on the 19th, the amount of "other loans" including business loans listed in fund procurement plans submitted by home buyers in the second half of last year increased by approximately 35% compared to a year earlier. The figure rose from 1.7 trillion won in the second half of 2024 to 2.3 trillion won in the second half of 2025.

The analysis suggests an increase in cases where individuals diverted loans received under the pretext of business operations to purchase personal homes, as government household loan regulations blocked mortgage loans exceeding 600 million won. Using business loans for personal home acquisition and processing interest as business expenses constitutes tax evasion.

National Tax Service Commissioner Lim Gwang-hyun stated via X that day, "We will comprehensively verify all cases listed as business loans in fund procurement plans and respond strictly if tax evasion is confirmed." The policy is to closely examine actual fund flows and the appropriateness of expense processing, immediately converting to tax audits when tax evasion is confirmed.

Multi-Home Owner Capital Gains Tax Surcharge Exemption to End

The Lee Jae-myung administration has maintained real estate speculation suppression as a core policy direction since its inauguration. In January, it clearly stated that the capital gains tax surcharge exemption for multi-home owners would end on May 9, blocking expectations for re-extension.

Reductions in long-term holding special deductions for non-resident multi-home owners have also been announced. The Financial Supervisory Service detected 127 cases totaling 58.75 billion won of unauthorized use of personal business loans in the second half of last year, recovering 91 cases worth 46.42 billion won.

On the 17th, President Lee warned via X, "If you obtain a loan by falsely claiming it's for business funds and use it to purchase real estate, you can be criminally prosecuted for fraud," adding "the Financial Supervisory Service and National Tax Service will conduct a comprehensive joint investigation and may file criminal fraud charges and recover the loans."

With financial authorities also intensifying enforcement, the government's determination to block real estate market speculation and stabilize housing prices is being concretized in multiple directions.