Ruling Party Says It Will Supplement the Government’s Revised Real Estate Tax Plan if Needed

[Financial News] On the 1st, the Democratic Party of Korea left room for further revisions to the government’s revised real estate tax reform plan during future discussions. Rather than welcoming the government’s proposal outright, the party appears to be taking a cautious stance and first watching public opinion, as sentiment in Seoul and elsewhere has recently worsened.
The party’s Policy Committee said that under the government’s revised proposal on real estate tax reform, the basic deduction for the Comprehensive Real Estate Holding Tax for non-resident single-home owners was raised from 900 million won to 1.2 billion won, while the deduction for non-resident couples holding a home jointly was increased from 400 million won each to 600 million won each. It added that both non-resident single owners and jointly owned homes by couples would receive a total deduction of 1.2 billion won, removing discrimination based on ownership structure.
It also noted that the tax burden cap would remain at 150 percent, the current level, rather than the 200 percent originally proposed by the government. The committee said that fairness in taxation among single-home owners, as felt by the public, and the predictability of the tax burden must also be strongly considered.
The party added that it has consistently raised various supplementary proposals to prevent excessive concerns over tax burdens from spreading, including a plan not to differentiate the basic deduction for the Comprehensive Real Estate Holding Tax for single-home owners based on whether they reside in the property. It said it will continue to closely examine how the government’s proposal affects the public burden and the housing market during National Assembly discussions, and will supplement what is necessary.
The party’s official position appears to reflect growing concern over worsening real estate sentiment, especially in Seoul. In political circles, analysts say that after the real estate tax reform plan was unveiled, both President Lee Jae-myung and the party’s approval ratings have been shaken, weakening the government’s ability to push ahead with policy. Accordingly, rather than immediately accepting the revised government proposal as is, the party is expected to monitor public sentiment on housing and deliberate further while acknowledging the possibility of changes during the discussion process.
In fact, the Democratic Party of Korea has been taking steps that reflect housing sentiment, starting with an assessment of the impact of the real estate tax reform plan, especially among lawmakers representing Seoul constituencies, and moving on to deliberations over supply measures. It has also completed appointments to its Seoul Policy Planning Team, and is reportedly working on various measures to restore worsening sentiment in Seoul.
  
[email protected] Kim Hyeong-gu Reporter