Kim Min-seok Says Reduction in Real Estate Tax Deduction and Higher Tax Burden Cap Need Careful Deliberation

[Financial News] Kim Min-seok, leader of the Democratic Party of Korea, said on the 23rd that "adjusting the basic deduction for the Comprehensive Real Estate Holding Tax for non-resident single-home owners from 1.2 billion won to 900 million won and raising the tax burden cap to 200 percent requires deep deliberation."
At the 10th high-level party-government meeting held that day at the Prime Minister's official residence in Seoul, Kim said, "For non-resident single-home owners, we need to broadly recognize the many real-world and unavoidable reasons for non-residence and eliminate blind spots."
He emphasized, "In the case of the Comprehensive Real Estate Holding Tax, even if the current system is maintained, the tax burden on non-residents naturally rises as officially assessed property values increase. That is why adjusting the basic deduction for non-resident single-home owners from 1.2 billion won to 900 million won and raising the tax burden cap to 200 percent requires deep deliberation."
Kim also said, "Converting the long-term capital gains special deduction into a long-term residence income deduction has the positive aspect of a housing market policy centered on actual residence, but we need to carefully examine whether the system overhaul could have negative ripple effects on the rental market."
He added that he would not spare legislative support for the government's housing supply measures. "The key to housing stability is, above all, expanding supply. We must mobilize every possible means and method to secure land on all fronts and expand real estate supply," he said. "Our party will also fulfill its legislative responsibility by shortening approval periods and reforming various regulations to speed up the expansion of housing supply."
On relations among the party, the government, and the presidential office, he said, "In accordance with the Constitution, political and social experience, and the party constitution and rules, we will further deepen and strengthen party-government-presidential office relations and, if necessary, improve the system more closely." He added, "The Democratic Party of Korea is running again. The party, the government, and the presidential office are joining hands and running again."

[email protected] Lee Hae-ram Reporter