The People Power Party has initiated a strong campaign against the “2026 Tax Reform Plan,” which aims to raise taxes on high-value properties and single homeowners who do not reside in the country, labeling it a “declaration of dropping a tax bomb.” Online, a humorous saying has spread: “Purchasing involves acquisition tax, selling involves transfer tax, residing involves comprehensive real estate tax, owning involves holding tax, gifting involves gift tax, passing away involves inheritance tax, not buying leads to jeonse or monthly rent, and apartment prices skyrocket.”
Leader of the People Power Party, Jeong Jeom-sig, posted on Facebook on the 4th, “This represents the most severe simultaneous tax increase, disregarding even the OECD’s suggestion that if holding taxes are increased, transaction taxes should be reduced.” Speaking about the substantial rises in overall real estate tax and transfer tax aimed at high-value properties and non-resident single homeowners, Jeong stated, “This is essentially a form of punitive taxation. The burden will eventually be shifted to jeonse and monthly rental prices, causing them to surge and spreading the impact to regular citizens.”
President Lee Jae Myung’s statements during last year’s presidential campaign—“I will not regulate housing prices through taxes”—have also faced criticism. Jeong said, “This signifies the failure of all commitments made by ‘presidential candidate Lee Jae Myung.’ The president’s real estate strategy, which involved a tax bomb, is moving in the exact opposite direction of his promises.” He further noted, “The president misled the public with falsehoods during the election. Even former President Moon Jae-in did not go this far in reversing his position, breaking promises.”
General Secretary of the Party Heo Jee-yong criticized, “This tax reform initiative goes after benefits essential for regular citizens and young people, including tax credits for marriage and childbearing, support for electric vehicle taxes, and extra deductions for public transportation. It’s as though the basic tax protection net for our citizens and future generations has been completely removed.”
Lawmakers from the capital area also all agreed in rejecting the reform. Na Kyung-won (Seoul Dongjak) stated, “The real estate crisis under the Moon Jae-in administration, which separated citizens into ‘those who have’ and ‘those who do not have’ by employing taxes as a tool to regulate housing prices, is now being replicated by the Lee Jae Myung administration and the Democratic Party. The president might have been aware of the tax reform plan beforehand and managed to avoid the tax burden by selling his property, but ordinary citizens are left with no escape.”
Ahn Cheol-soo (Gyeonggi Bundang-gap) said, “The issue goes beyond property taxes; concealed harmful terms in financial instruments will drain individual investors’ funds. While promoting the development of capital markets, they are leading the whole country into ‘reckless speculation.’” Kim Yong-tae (Gyeonggi Pocheon-Gapyeong) cautioned, “Public opinion in Seongnam, concerning housing, could shift into frustration directed at the government and the ruling party.”
Concerning the rise in real estate transaction taxes, some people responded with, “Are you telling regular citizens to commit suicide?” As the statement “Purchasing involves an acquisition tax, selling involves a transfer tax, residing involves a comprehensive real estate tax, owning entails a holding tax, gifting incurs a gift tax, dying brings an inheritance tax, not purchasing leads to jeonse or monthly rent, and apartment prices are skyrocketing” went viral online, senior member Shin Dong-wook remarked, “This expresses public opinion.” He further stated, “Individuals in power, such as President Lee Jae Myung, can easily establish mortgages and use private financing, so they will manage. However, powerless, financially struggling ordinary citizens are being told to take their own lives.”
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