Multi-home owners pressed to dispose of homes by 2027: the shocking truth behind the tax reform plan

He stressed that the current tax reform plan will hardly achieve the goal of stabilizing home prices.

He added that there have also been cases where the tax burden on one-home owners has grown.

Dr. Kim Je-kyung explained that as regulations on ultra-high-priced homes were strengthened, a phenomenon emerged in which people prefer homes outside the regulated scope. This is a phenomenon arising as the market responds to regulation and seeks new investment strategies.

This appears intended to affect the housing market by forcing multi-home owners to release their properties.

Dr. Kim Je-kyung said the introduction of this deduction cap was an unexpected measure and will have a considerable impact on the real estate market. He added that this measure could bring a significant change in the selling mindset of multi-home owners.

This is interpreted as a policy that induces a flood of high-value home listings onto the market.

He warned that the reform could make moving harder by increasing the tax burden when people want to relocate.

The reform appears to effectively restrict the movement of long-term holders and tie them to specific areas. When homeowners have to move for housing conditions or jobs, they will not be able to move freely because of taxes. Dr. Kim pointed out that such a policy could restrict basic individual rights.

It can be a particularly heavy burden for older people or those who have lived in a certain area for a long time. When it is difficult to change the living base built over a long period, added tax burdens could make relocation practically impossible. This is criticized as likely to reduce liquidity in the housing market and deepen housing instability.

The analysis is that the reform of the long-term holding special deduction, which reduces capital gains tax burdens upon sale, is instead restricting individuals' housing choices. Dr. Kim Je-kyung warned that this measure will have a real impact on people's lives.

This appears intended to prevent multi-home owners from holding homes purely as investments and to strengthen owner-occupancy requirements.

He analyzed that this reform takes a new approach different from existing methods of imposing taxes.

Citing the case of Nazi Germany, he compared the method of isolating and attacking a specific group to the current tax reform.

Dr. Kim Je-kyung predicted that regional multi-home owners will be dissatisfied with paying comprehensive real estate tax. He noted a perception that it is not the rich in regions but the wealthy in Seoul who should pay taxes to be distributed to the regions.

Concerns were also raised about the impact of this tax reform plan on regional areas. If regional multi-home owners are forced to dispose of homes due to tax burdens, the regional real estate market could fall into deeper stagnation. Dr. Kim Je-kyung raised the possibility that these points were not sufficiently considered in the design process.

Criticism has also continued that tax policy could deepen imbalances between regions and classes. Applying the same standard to regional multi-home owners as to Seoul's wealthy is unfair, and this could trigger social conflict.

Dr. Kim Je-kyung explained that the main targets of this reform are limited to owners of ultra-high-priced homes in Gangnam and those with large capital gains tax burdens. He added that for people holding 'one good home rather than a prime one' in Seoul, it could instead be a short-term positive.

Dr. Kim Je-kyung viewed the government's move to release a flood of listings by 2027 as intended to solve the real estate problem, which is the Democratic Party's Achilles' heel. He said there is a political calculation to stabilize the real estate market ahead of the general election.

The policy of inducing home sales by 2027 can be interpreted as a strategy to supply enough listings to the market by that point and reduce upward price pressure. It can also be seen as an attempt to quell voters' dissatisfaction with real estate and gain an advantage in the next general election. Dr. Kim Je-kyung explained that this policy aims at short-term effects.

There may also be an intent to appease the dissatisfaction of specific classes by pressing multi-home owners to sell, and to appear to contribute to housing stability for the working class. However, what long-term impact such a policy will have on the soundness of the real estate market is uncertain. Dr. Kim warned that the temporary nature of the policy could instead increase market uncertainty.

The view is that the government's effort to manage the real estate market before the general election is reflected in this tax reform plan. Dr. Kim Je-kyung stressed the influence of political considerations on economic policy and argued that the true purpose of the tax reform plan must be examined closely.

Dr. Kim Je-kyung explained that people with income can somehow endure, but those without income will struggle to bear high holding taxes and will inevitably have to leave for regional areas. He said this is a policy that forces people to give up homeownership.

Concerns were also raised that this tax reform plan could be an especially heavy burden for low-income earners and retired older people. When income has stopped and high holding taxes become hard to bear, people may face having to leave the homes where they have lived their whole lives. Dr. Kim Je-kyung criticized that such a policy could work against socially vulnerable people.

In the end, the analysis is that the government's tax policy could punish only specific classes and result in forcing them to move to regional areas. Dr. Kim Je-kyung emphasized that such a policy would infringe on freedom of residence and have negative effects of restricting movement between classes.

Dr. Kim Je-kyung pointed out that it would be very difficult for people over 65, who have all their living conditions in place in Seoul, to be told to leave for regional areas. He warned that this policy could seriously affect the lives of older people.

Older people find it hard to adapt to new environments and face a heavy burden in giving up existing social networks. The fact that infrastructure enjoyed in Seoul, such as medical services and access to children, cannot easily be expected in regional areas also makes relocation difficult. Dr. Kim Je-kyung criticized that policymakers are overlooking these practical difficulties.

In particular, for older people who have lived in Seoul for a long time, their home means more than just a dwelling. Forcing them to leave a space that is their life base and holds their memories because of tax issues means more than simply disposing of a house. Dr. Kim Je-kyung warned that such a policy could lower the quality of life of older people.

Forcing relocation to regional areas can place considerable mental and economic burdens on older people. Dr. Kim Je-kyung predicted that if the policy is applied harshly only to specific classes, it could trigger social conflict and that the policy goal itself would struggle to be achieved.

This shows the government's strong will to restrain multi-home owners from holding homes and to supply listings to the market.

Through this policy, the government appears intent on preventing overheating in the real estate market and pursuing housing price stability. In particular, by specifying the year 2027, it clearly presents a sale timeline to multi-home owners and conveys a message that those who do not comply will face disadvantages.