'Real Estate Forum to Build Consensus on Supply, Taxation'

Presidential Chief of Staff Kang Hoon-sik views the upcoming real estate forum, scheduled for the 23rd with President Lee Jae-myung's attendance, as a crucial step in building national consensus on the country's most persistent problems. "Real estate is the biggest chronic problem in Korean society," Kang stated in an interview with The Hankyoreh. He emphasized that the forum is intended to gather collective intelligence and discuss various aspects, including loan-to-value (LTV) and debt-to-income (DTI) ratios, and the current tax system. The goal is not for the administration to unilaterally announce policies, but to foster a shared understanding and agreement among the public.

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Real estate is the biggest chronic problem in Korean society. We need to gather collective intelligence and discuss issues such as DTI, LTV, and the tax system. The goal is to build a consensus among the people.

Kang specifically pointed to the inequity in the current comprehensive real estate tax system, citing the example of individuals owning 300 townhouses who are exempt from paying substantial annual taxes. "Isn't it surprising?" he asked, highlighting that such owners often benefit from significant exemptions on property taxes as well. He believes the President's stance on adjusting tax benefits for non-resident or speculative property holdings reflects a desire to ensure those who own homes for residence can live well, while owners of ultra-luxury properties should contribute more. "We need to build a consensus among the people by putting it on the table and discussing it," Kang asserted.

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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. Isn't it surprising?

Regarding housing supply, Kang reiterated the administration's top priority: "We are prioritizing housing supply expansion and will go all-in on it." He acknowledged the need for innovative ideas to achieve this goal. On the broader economic front, Kang discussed the "3 Big Mega Projects", encompassing semiconductor clusters, AI data centers, and physical AI, as key initiatives to achieve "leapfrog" growth and create a "super-gap" Korea. He aims to deliver the best possible results from these projects within President Lee's term, projecting a long-term growth trajectory that could help resolve K-shaped economic polarization.

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We are prioritizing housing supply expansion and will go all-in on it. Good ideas will also be needed.

Kang also touched upon the ambitious timeline for the Honam semiconductor cluster, noting that a candidate site was announced just a week after the mega-project's unveiling. The objective is to achieve the highest possible outcomes within the administration's term through the fastest administrative processes. He also addressed the complex issue of relocating the military airport in Gwangju, a prerequisite for the semiconductor cluster, emphasizing the need for careful coordination with the U.S. military to avoid security gaps. Discussions on new nuclear power plants and other energy sources are ongoing, with current plans sufficient for the mega-projects but requiring future adjustments.

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The goal is to create a 'super-gap' Korea by achieving the best possible outcomes from these projects within the President's term.