President Lee Jae-myung said the South Korean tax system is inequitable because real estate profits are taxed significantly lower than high labor incomes.

This push for tax reform comes as the administration seeks to curb speculative investment in high-value housing and redistribute the tax burden. By highlighting the disparity between wealth generated through property and wealth earned through work, the president is building a justification for legislative changes to the national tax code.

Speaking Tuesday during a National Cabinet meeting at the Blue House in Seoul, Lee said the discrepancy in how different types of wealth are treated [1]. The president said that a real estate capital gain of approximately 100 billion won results in a tax payment of only a few billion won [1].

Lee contrasted this with the treatment of professional earnings. He said that for labor income exceeding 10 billion won, taxpayers pay roughly 50 percent in taxes [1].

"Real estate capital gains can be in the 10 billion won range, but the tax is only a few hundred million won," Lee said [1]. He said that for labor income over 10 billion won, people pay almost half in taxes [1].

The president's remarks followed his return from recent overseas trips. He used the cabinet session to urge the implementation of stronger tax measures targeting high-value homes to ensure a more balanced fiscal system [1].

The administration intends to use these figures to support proposed reforms that would increase the financial burden on owners of luxury properties. This strategy aims to reduce the incentive for real estate speculation, while acknowledging the heavy burden currently placed on the highest earners in the workforce [1].

“"Real estate capital gains can be in the 10 billion won range, but the tax is only a few hundred million won,"”

The president's focus on the gap between capital gains and labor taxes signals a shift toward aggressive wealth redistribution. By framing real estate profits as under-taxed relative to professional salaries, the government is attempting to neutralize political opposition to higher property taxes by appealing to a sense of fairness and social equity.