Ruling Party Expands Housing Task Force to Discuss Tax Reforms and Supply Measures

The Democratic Party of Korea is significantly restructuring its internal task force focused on stabilizing the housing market. The move aims to broaden discussions beyond just housing supply to encompass the government's proposed real estate tax reforms. This expansion signals a commitment to incorporating a wider range of perspectives, especially from lawmakers representing Seoul, who are particularly attuned to the impact of property tax adjustments.

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We have been operating privately, mainly discussing supply, but we are expanding and reorganizing it now. We plan to continue with public discussions and forums with stakeholders.

The party's policy chief, Han Jeong-ae, announced the revamp, stating that the task force, which had previously operated privately and focused mainly on supply, would now engage in public discussions and forums with stakeholders. The enlarged group will include members from key standing committees related to real estate policy, such as国土交通 (Land, Infrastructure and Transport), 재정경제기획 (Finance, Economy and Planning), 정무 (Government Affairs), and 행정안전 (Administration and Safety). Several Seoul-based lawmakers have also been added to the roster.

Han emphasized that the party is actively collecting diverse opinions regarding potential reductions in tax benefits for individuals owning one non-resident property. She acknowledged that Seoul lawmakers are especially sensitive to these proposed tax changes and are providing valuable input. The party intends to consolidate these views before engaging in further consultations with the government. This process underscores the party's effort to ensure that the voices of its constituents, particularly those in the capital region, are adequately considered in policy adjustments.

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There are diverse opinions regarding real estate tax reforms, and we are continuously gathering them. Lawmakers in Seoul are more sensitive and are providing related opinions.

The party also stressed that the government's announced tax reform plan is not necessarily final. Han noted that various stakeholders are expressing different opinions, and with potential reform finalization around late August, the party aims to coordinate its stance with the government to reflect it in proposals submitted to the National Assembly. This includes potential legislative or enforcement decree revisions, indicating a willingness to continue dialogue and incorporate feedback.

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We will take time to organize all of these opinions, and once organized, we plan to hold additional government-party consultations.

Looking ahead, the expanded task force is scheduled to hold its first meeting next week, likely on a Wednesday or Thursday. The initial session will involve receiving reports from relevant government ministries to identify key discussion topics before delving into specific tax and supply issues. Additionally, the party is pursuing closer collaboration with the Seoul Metropolitan Government to boost housing supply, exploring measures like decentralizing permit authority for smaller housing projects to reduce bottlenecks. A proposal to utilize parts of Yongsan Park for housing for young couples and actual buyers has also been presented to the government.

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Since stakeholders are expressing diverse voices about the tax reform plan announced by the government, we will try to reflect them by coordinating between the party and the government before submitting them to the National Assembly, as the reform plan may be finalized around the end of August.