"If Moon's real estate failure is repeated, the general election will be at risk"... Ruling party voices crisis

[Financial News] Inside the DPK, there is growing concern that if the party follows the Moon Jae-in administration's path of tighter regulation and heavier taxation amid a housing supply shortage, the 2028 general election could become difficult.
According to political sources on the 14th, concerns over the Lee Jae Myung administration's real estate tax reform were raised repeatedly at the DPK's closed-door caucus the previous day.
Lawmaker Lee Yeon-hee reportedly said that increasing taxes on one-home owners who do not live in the property would have a very negative impact on upcoming elections, adding, "If policy goes forward like this, we will lose every election."
Lawmaker Hong Ki-won also reportedly warned that reducing tax benefits for comprehensive real estate tax or for one-home owners who do not live in the property could be like "pouring oil on a fire."
In particular, there is growing caution that the government should not repeat the Moon Jae-in administration's approach of emphasizing higher taxes amid a supply shortage.
After the caucus, lawmaker Jung Jin-wook told reporters, "Overall, supply needs to be increased, but the timing seems a little late," and argued, "If you look at real estate only as a policy issue, I believe it will definitely fail."
Jung added, "For 26 million people in the Capital Region, owning a home is everything in life," and said, "We should not ignore that desire and approach the issue by punitively taxing people in the name of tax justice or opposition to unearned real estate gains."
He continued, "Even if only a small percentage of people are subject to holding taxes, everyone else watching will think, 'If I ever buy a house someday, I will go through the same thing.'"
He also directly referred to the Moon Jae-in administration's real estate policy and warned of its electoral impact. Jung said, "If this continues, there could be an effect in the next general election or the next presidential election," adding, "We already went through this. The biggest reason during the Moon Jae-in administration was that supply was not provided, and now we are repeating the same thing after learning from that experience."

[email protected] Song Ji-won Reporter