"Tax or Fine?"...Ruling and Opposition Parties Clash Head-On Over Real-Estate Policy

[Financial News] The ruling and opposition parties clashed head-on during a National Assembly interpellation on economic affairs on the 11th over the government's real-estate policy and tax reforms. The Democratic Party of Korea targeted Seoul Mayor Oh Se-hoon, arguing that Seoul should take a more active role in housing supply, while the People Power Party countered that the government's real-estate tax policy effectively amounted to "punitive taxation." A surveillance controversy also continued over a Prime Minister's Office official who asked questions at independent lawmaker Han Dong-hoon's press conference without disclosing his identity.
People Power Party lawmaker Park Soo-min criticized the planned reform of the long-term holding special deduction, asking Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol, "The home you want to buy and the home you want to live in can be different, so why punish people?" Park said, "The long-term holding special deduction has been in place for more than 30 years, and it is being changed overnight. Do you think the public will accept this as a reasonable tax benefit?" He added, "Single-home owners should not have to worry about taxes. We must distinguish between taxes and fines."
Koo Yun-cheol rejected the claim, saying, "We are not punishing anyone." He explained, "We intend to shift to a system that rewards residence rather than ownership. If we provide incentives for ownership, we cannot move toward a housing market centered on residence. It must be changed," he stressed.
The Democratic Party of Korea highlighted Seoul's responsibility for housing supply. Lawmaker Bok Ki-wang pressed Prime Minister Han Seong-sook, saying, "Mayor Oh has run Seoul for more than six years, yet he blames the Lee Jae-myung administration for housing supply in Seoul. Isn't his own responsibility much greater?"
Bok also criticized Oh for supporting the lifting of the Greenbelt under previous conservative administrations while opposing the current administration's efforts, asking, "When it is done by the party you belong to, is it supply, but when it is done by a government led by a party you do not belong to, is it destruction?" Prime Minister Han replied, "Housing supply is an issue facing all citizens. Local governments have considerable authority, so the central and local governments must both engage in active consultations."
A dispute also arose over a Prime Minister's Office section chief who asked questions at a lawmaker's press conference without identifying himself. People Power Party lawmaker Song Eon-seok claimed, "There is a controversy over whether a Prime Minister's Office employee surveilled a member of the National Assembly." He added, "This is raising public suspicion that the Prime Minister's Office is still operating a surveillance team, as it did in the past."
Prime Minister Han expressed regret, saying that the employee had acted inappropriately. Han said, "As a public official, it was inappropriate to ask questions at an opposition lawmaker's press conference without clearly disclosing his identity. In particular, I regret that he caused unnecessary misunderstanding and controversy by answering that he was an ordinary citizen. I express my regret to lawmaker Han and the public."
The Democratic Party of Korea distanced itself from the opposition's characterization of the incident as surveillance. Lawmaker Jung Jin-wook countered, "Even by common-sense standards, it is difficult to regard this as surveillance." He then claimed, targeting Han Dong-hoon, "Unable to abandon his habits as a special investigations prosecutor, he is using illegally obtained prosecution investigation information to attack Kim Seung-won, the nominee for justice minister."

[email protected] Kim Kyung-min Reporter