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SEOUL, Feb. 9 (Yonhap) -- President Lee Jae Myung on Monday floated the idea of phasing out tax breaks for registered home rental operators as the government is set to end tax exemptions for owners of multiple homes to cool the overheated property market in the Seoul metropolitan area.

In his second consecutive day of social media posts on the issue, Lee said it was unfair for registered landlords who own and rent out multiple homes for profit to continue receiving generous tax breaks, especially when other multiple home owners are set to face heavier capital gains taxes once the temporary exemption expires in May.

"While there should be a grace period allowing them to sell their properties, wouldn't it be fair to apply the same taxation system to registered rental homes and ordinary rental homes once the mandatory rental period ends?" Lee wrote on the social media platform X.

President Lee Jae Myung speaks during a town hall meeting held in the southeastern city of Changwon on Feb. 6, 2026. (Yonhap)

Registered rental homes are subject to caps on rent increases and guarantee tenants a minimum rental period. While tax incentives were expanded in 2017, the apartment rental and short-term rental schemes were scrapped in 2020 amid criticism that they were being used as tax-avoidance tools by multiple home owners.

Lee said registered rental business operators are exempt from acquisition tax, property tax, the comprehensive real estate holding tax and additional capital gains taxes, noting around 300,000 households in Seoul are registered as rental homes.

If homes registered under the private rental program are put up for sale after their mandatory rental period expires, Lee said the move could have an effect equivalent to supplying tens of thousands of new housing units.

"As alternative investment options exist, it is time to rethink the current approach," he said, suggesting public debate on the issue.

Under the current rules, once the mandatory rental period ends, property tax and comprehensive real estate tax benefits expire, but registered landlords remain eligible for exemptions from additional capital gains taxes imposed on multiple home owners.

Lee suggested either exempting capital gains taxes after a grace period to allow time for sales or gradually phasing out the remaining tax incentives altogether.

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