Jung Won-oh says redevelopment and reconstruction should focus on profitability, keep long-term holding special deduction

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\r\n[Financial News] Jung Won-oh, the Democratic Party of Korea candidate for Seoul Metropolitan City mayor, said on the 14th that he plans to expand redevelopment and reconstruction projects by focusing on profitability, while keeping the long-term holding special deduction for capital gains tax on one-home owners. His remarks were a response to criticism from the opposition that he would focus on regulation and tax hikes rather than expanding housing supply.
At a forum hosted that day by the Korea News Editors' Association at KCCI, Jung said, "When the real estate market is strong, redevelopment and reconstruction gain momentum and supply increases. When the market is weak, they slow down. Right now, we need to focus on improving project viability," adding, "About 20,000 homes a year have not been supplied for several years. Over the next five years, we need to make up for that shortfall."
Jung said he would stabilize the housing market by drawing up a sales plan in line with the Lee Jae-myung administration's real estate policy as soon as he is elected mayor. He had previously pledged to supply a total of 360,000 homes by 2031 through private redevelopment projects, reconstruction of permanent rental housing complexes, and new purchase-based rental housing. To that end, he promised to revise the Act on the Improvement of Urban Areas and Residential Environments to streamline redevelopment procedures. The plan would allow the basic plan and designation of redevelopment zones to proceed at the same time, while approvals for project implementation plans and management-disposition plans could be handled in a single step.
Expanding private redevelopment and reconstruction by shortening redevelopment procedures is also one of the pledges of Oh Se-hoon, the PPP candidate for Seoul mayor. His goal is to break ground on 310,000 homes by 2031. Both ruling and opposition candidates are therefore making housing supply expansion a top priority.
On the long-term holding special deduction that the government and ruling party have said they will reform, Jung leaned toward keeping the current system. At present, there is a move to abolish or reduce the holding-period deduction under the long-term holding special deduction. There are also discussions about requiring one-home owners who could not live in their homes for unavoidable reasons to prove that the property was not purchased for speculation.<See page 2 of the April 23, 2026 edition of this paper>Jung said, "The current rights of one-home owners must be protected. Unless there is clear evidence of speculative intent, they should be broadly protected," adding, "If there is a difference in position with the government, we will consult closely and take a citizen-centered, protection-oriented approach." He made clear that even if he clashes with the government, he intends to minimize any reduction in the long-term holding special deduction.
He said the pledge announced the previous day to temporarily cut property taxes for one-home owners without income would be fleshed out after the election in consultation with local district offices. A key issue is whether the cut would also apply to those with financial or rental income. Jung said, "The basic principle is one-home owners without wage or business income, and the exact criteria will be decided after the election."
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uknow@fnnews.com Kim Yun-ho Reporter