'Ragged tax bomb' policy on real estate draws sharp criticism

A scathing critique targets South Korea's recent real estate tax policies, labeling them a "ragged tax bomb" that disproportionately burdens citizens. The column specifically condemns the comprehensive real estate holding tax (종부세) and capital gains tax adjustments for non-resident single homeowners as "hastily made" and "out of touch with citizens' lives."

The article highlights conflicting public opinion polls regarding the effectiveness of the "8.3 real estate measures," noting that while some surveys show slight approval, others indicate significant public opposition. More importantly, it points to a sharp public perception that the policies negatively impact the housing market. The author suggests these measures may be hindering President Lee Jae-myung's efforts to regain public trust, as real estate policy is frequently cited as a reason for dissatisfaction with his job performance.

Further criticism is leveled at the complexity of the capital gains tax system, which is described as confusing even for tax professionals. The lack of adequate measures to address rising rents is also a major concern, with a significant majority of non-homeowners anticipating further increases. The column argues that the government's approach, particularly the increased taxation on non-resident single homeowners, treats them as "potential speculators" and constitutes an "excessive" application of the law.

The article questions the government's lack of basic statistics, such as the number of non-resident single homeowners in Seoul, before implementing such policies. It also ridicules the "exception clauses" for those who must move for reasons like education or employment, calling them poorly conceived and requiring individual review after the fact. The author invokes President Lee's own words about policies needing to adapt to citizens' lives, not the other way around, and concludes that the current approach exemplifies the opposite.

Ultimately, the column urges a fundamental review of the decision-making process and the real estate policy team. It supports a proposal by Democratic Party leader Kim Min-seok to differentiate between resident and non-resident single homeowners for the comprehensive real estate holding tax, deeming it a "common-sense and normal judgment." Without these reforms, the article warns, the administration will remain mired in "real estate quagmire" throughout the president's term.