Reform Party leader Lee Jun-seok announced on the 2nd that he would closely monitor if the multi-homeowners within the Democratic Party and the government would actually sell their houses by May 9, when the temporary suspension of heavy capital gains tax ends, indicating a high level of scrutiny.
On social media, Lee stated, “May 9 is the day the temporary suspension of heavy capital gains tax ends. At the same time, it will be the day the market evaluates the sincerity of the Lee Jae-myung government’s real estate policy.”
He added, “While the intensity of the president’s rhetoric is strong, the market remains on the sidelines because it awaits not words but actions. Regardless of how strong the president’s message is, the market observes who reacts and how. If the president tells people to sell their houses, what are the people around him actually doing?”
Citing data from the Citizens’ Coalition for Economic Justice, he said, “Of the 165 Democratic Party lawmakers, 25 are multi-homeowners. Among them, 20 own properties in Seoul’s Gangnam district, with 11 renting out their properties without residing there. It is known that there are also quite a few multi-homeowners and high-value real estate owners within the presidential office and senior cabinet positions.”
He continued, “While holding assets is neither illegal nor subject to criticism, from the market’s perspective, their decisions by May 9 will determine the credibility of real estate policies.”
Lee emphasized, “High-ranking officials and ruling party lawmakers have access to more information than the general public. They understand the policy design process, can predict the implementation’s intensity, and gauge the direction of future regulations. In market terms, they are insiders with superior information.”
“Just like how insider selling of company stock is the strongest sell signal in the stock market, the real estate market is no different. When policymakers start putting their houses on the market, it’s like hanging a banner that says ‘this is the peak,'” he explained further.
He also mentioned, “If the insiders do not sell their homes by May 9, the market will believe that even the policymakers do not trust the efficacy of their policy. Why should the general public comply with regulations that the architects themselves do not follow? Conversely, if insiders start listing their properties, the market will respond differently.”
Lee concluded, “If by the morning of May 10 a significant number of high-ranking officials and ruling party lawmakers have participated in selling, the market will begin trusting the policies. If there is no change in asset status, however, the market will not trust the president’s warning.”