Kang Hoon-sik: 'Exempting 300 Townhouses from Comprehensive Real Estate Tax is Infuriating... We Will Go All-In on Supply Expansion'

Presidential Chief of Staff Kang Hoon-sik declared that the administration is committed to an "all-in" approach to expanding housing supply, aiming to tackle South Korea's persistent real estate challenges. In an interview with The Hankyoreh, Kang stated that the government plans to expedite construction starts and significantly increase rental housing availability. He also revealed that President Lee Jae-myung will host a public forum on real estate on the 23rd to gather ideas and build consensus on critical issues.

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We will 'go all-in' on expanding housing supply.

Kang expressed strong criticism of the current property tax system, pointing out the inequity where owners of multiple rental properties, such as 300 townhouses, are exempt from paying significant annual comprehensive real estate taxes. "For example, someone who owns 300 townhouses has no taxes. They are exempt from paying tens of billions of won in comprehensive real estate tax annually, and we are unaware of this. Most property taxes are also exempted," he said, questioning the fairness of such a system. He suggested that the President believes tax benefits for non-resident or speculative property ownership should be adjusted, advocating for a system that allows homeowners to live comfortably while those with luxury properties contribute more.

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For example, someone who owns 300 townhouses has no taxes. They are exempt from paying tens of billions of won in comprehensive real estate tax annually, and we are unaware of this. Most property taxes are also exempted.

Discussing the administration's "3 Big Mega Projects", focused on semiconductor clusters, AI data centers, and physical AI, Kang outlined their ambition to reverse declining economic growth and secure a leading global role in artificial intelligence. "These projects aim to rebound growth rates and take a leading role in the global AI landscape," he explained. The goal is to achieve the best possible outcomes from these investments within the President's term, thereby creating a long-term growth trajectory and addressing the K-shaped economic polarization.

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These projects aim to rebound growth rates and take a leading role in the global AI landscape.

Kang also addressed the relocation of the Gwangju military airport, a site chosen for a semiconductor cluster, emphasizing close cooperation with the U.S. military to ensure security is not compromised. He touched upon energy policy, noting that while current plans for nuclear and renewable energy sources are sufficient for the mega projects, future needs will require further discussion on additional nuclear power, small modular reactors, and LNG. Regarding the potential for a "52-hour work week exception" for semiconductor industrial complexes, Kang indicated the government remains cautious due to concerns about potential expansion to other sectors and the labor sector's worries.

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The core issue is whether we can meet the schedule without allowing a security vacuum. We are preparing to do this in the most harmonious way through cooperation with the U.S. military.