Kim Min-seok's First Senior Party-Government Meeting: "Broadly Recognize Unavoidable Reasons for Non-Resident Single-Home Ownership"

[Financial News] Kim Min-seok, leader of the Democratic Party of Korea, said at his first Senior Party-Government Council since taking office that he agrees with the government's direction on real estate tax reform, but called for improvements to the Comprehensive Real Estate Holding Tax and the long-term holding special deduction for capital gains tax. The government and the presidential office also said they would reflect public opinion to improve the tax reform plan while speeding up efforts to expand housing supply in the Capital Region.
At the 10th Senior Party-Government Council held on the 23rd at Chongni Gonggwan in Samcheong-dong, Jongno-gu, Seoul, Kim said, "We fundamentally agree with the government's and the president's stance on expanding supply and the direction of tax reform," but added, "I would like to offer a few suggestions for improvement."
On non-resident single-home owners, Kim stressed that "the many different real-life reasons for non-residence should be broadly recognized so that no blind spots remain." He also called for a cautious approach to reforming the Comprehensive Real Estate Holding Tax. Kim said, "Even if the current system is maintained, there is a natural increase in the tax burden as assessed values rise," and added, "I believe a tax reform that lowers the basic deduction from 1.2 billion won to 900 million won and raises the tax burden cap to 200 percent requires deep deliberation." On a plan to convert the long-term holding special deduction for capital gains tax into a long-term residence income deduction, he said there is "a positive aspect in the direction of a housing market centered on actual residence," but added that "we need to carefully examine whether continuity in the system reform could have negative spillover effects on the rental market."
He also placed the greatest emphasis on expanding supply to stabilize the housing market. Kim said, "Above all, the key to stability is expanding supply," and stressed that "we must mobilize every possible means and method to secure land and expand supply." He added, "As the ruling party, we will fulfill our legislative responsibility by shortening permit procedures and removing various regulations to support supply expansion."
Kang Hoon-sik, chief of the Office of the President of the Republic of Korea, also said the government would gather opinions and make improvements to its tax reform plan. Kang said, "The tax reform plan was not a unilateral announcement of finalized policy, but the presentation of a draft meant to hear public opinion," adding, "This meeting was arranged so that the party, government and presidential office could share the valuable opinions they have heard and discuss how to finalize a reasonable tax reform plan. We need to revisit voices from the field and further improve the policy's completeness and acceptability."
On housing supply in the Capital Region, he also asked the ruling party to identify developable sites. Kang said, "Housing anxiety can only be eased by presenting concrete plans and schedules, not vague promises," and added, "If Regional Committee Chairs who are familiar with local conditions propose ways to secure housing land that can be supplied in the short term, we will actively review them."
Prime Minister Han Seong-sook also described stabilizing the real estate market and rationalizing the tax system as urgent livelihood issues. Han said, "Because tax reform has a high level of public sensitivity and a major impact on daily life, we need to look at each part carefully and approach it with precision," adding, "I will also review how to speed up the 2026 Tax Reform Plan and housing supply in the Capital Region, along with key legislative initiatives."
Kim emphasized a "one-team" approach among the party, government and presidential office, while making clear that the party would play a role in reflecting public sentiment and supplementing government policy. Kim said, "We will maintain the direction of ensuring the success of the Lee Jae-myung administration through full party-government-presidential unity, but we will also carry out our role from a changed position," adding, "Until the final conclusion is reached, we will not lose a healthy sense of tension and will engage in intense discussions with the government." He continued, "The relationship between the party and the presidential office, and between the party and the government, must become even closer," and said, "We will deepen and strengthen the party-government-presidential relationship and, if necessary, improve the system. The Democratic Party of Korea will run again, and the party, government and presidential office will join hands and run again."
[email protected] Song Ji-won, Lee Hae-ram Reporter