Democratic Party candidate Kim Min-seok calls for revisions to real estate tax policy

Kim Min-seok, a contender for the leadership of South Korea's Democratic Party, has called for revisions to the government's real estate tax policies, emphasizing the need for detailed adjustments through party-government consultations. While acknowledging the general direction of the government's reforms, Kim highlighted potential issues that require careful consideration.

Kim specifically raised concerns regarding the proposed abolition of the non-resident holding tax credit for single-home owners. He argued that this change could effectively increase taxes for those owning a single home valued at over 1.2 billion won in Seoul, potentially leading to adverse effects such as forcing tenants to vacate their homes. "There are concerns that it could lead to side effects like forcing tenants to move out," Kim stated.

Regarding the comprehensive real estate tax (종부세), Kim suggested that the current system could be maintained. He proposed that simply increasing the basic deduction for owner-occupiers to 14 billion won might suffice, as the natural increase in property values would already raise the tax burden for non-residents. He also questioned the differentiated tax treatment between jointly owned properties and individually owned ones, suggesting that such distinctions might not be desirable.

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There are concerns that abolishing the non-resident holding tax credit for single-home owners, which applies to single-home owners with properties valued at over 1.2 billion won in Seoul, could effectively increase taxes and lead to side effects like forcing tenants to move out.

Furthermore, Kim indicated that incentives for individuals aged 65 and above who move to provincial areas could also be open for discussion. He expressed his intention to work with the government to refine these policies after the party's national convention.

"After the party convention, as the President has said, the party will carefully gather opinions from the public, experts, and the opposition party, and we will revise and supplement the details through party-government consultations," Kim announced. His proposals aim to balance the government's objectives of stabilizing the real estate market with mitigating the impact on middle-class homeowners and renters.

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After the party convention, as the President has said, the party will carefully gather opinions from the public, experts, and the opposition party, and we will revise and supplement the details through party-government consultations.