President Lee to dine with Kim Min-seok and Han Byung-do at Cheong Wa Dae on the 11th... Can they resolve the rift over the 1.4 billion won property tax threshold?

[Financial News] President Lee Jae Myung will host Kim Min-seok, leader of the Democratic Party of Korea, and floor leader Han Byung-do for a private dinner meeting at Cheong Wa Dae on the 11th. The gathering is seen as an opportunity to reconcile differences between the party and the presidential office over the recent debate on easing the comprehensive real estate holding tax and to discuss major issues facing the country.
According to ruling-party sources on the 10th, the dinner was arranged 78 days after August 25, shortly after Kim was elected party leader. Presidential Chief of Staff Lim Kwang-hyun and Senior Secretary for Political Affairs Choi In-ho are expected to attend on behalf of Cheong Wa Dae, while the party will be represented by Senior Deputy Floor Leader Cheon Jun-ho and party leader’s Chief of Staff Kim Tae-seon, among others.
The main topic of the meeting will undoubtedly be real estate policy. The DPK said it had strongly urged the government, after the Senior Party-Government Council on the 8th, to set the basic deduction for the comprehensive real estate holding tax at 1.4 billion won for all single-home owners, regardless of whether they live in the property. The move is seen as an effort to soothe worsening public sentiment over real estate in the Seoul metropolitan area ahead of the upcoming general election.
Cheong Wa Dae, however, has said, “Easing the comprehensive real estate holding tax was not a topic of the meeting,” distancing itself from the party’s uncoordinated remarks and expressing displeasure. Concerned that the credibility of real estate policy could be undermined, it has balked at raising the threshold for single-home owners, with the prevailing mood favoring the original plan. Meanwhile, lawmakers representing constituencies outside the Seoul metropolitan area and some in the broader ruling camp have even called for tightening the tax criteria, leaving views divided within the ruling bloc.
With differences between the party and the presidential office showing signs of coming to the surface, political circles expect President Lee and the ruling party leadership to exchange views on the public mood and work to coordinate their positions at the dinner. Given the strength of the party’s demands, some also speculate that Cheong Wa Dae may devise a compromise to some extent with the election in mind.
In addition to real estate issues, the dinner is expected to include in-depth discussions of key political and judicial matters, including the Special Counsel Act on Fabricated Prosecution, which recently passed the National Assembly plenary session; preparations for the confirmation hearing of Justice Minister nominee Lee Yong-cheol, who has faced a series of allegations concerning his personal background; and efforts to launch a parliamentary investigation into Cho Hee-dae, Chief Justice of the Supreme Court of Korea.


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