Ruling Party Lawmakers Warn of Electoral Crisis Over Real Estate Policies

Lawmakers from South Korea's ruling Democratic Party voiced significant concerns over the government's real estate policies during a closed-door meeting, with some warning of potential electoral disaster. The primary worry centers on the potential backlash from increased taxes on non-resident single homeowners and the reduction of tax benefits for this group.

Rep. Lee Yeon-hee reportedly stated that increasing taxes on non-resident single homeowners would have a "very negative impact" on upcoming elections, predicting a complete loss if the policies proceed as planned. Rep. Hong Ki-won added that such measures, along with changes to the comprehensive real estate tax, could be like "pouring oil on a fire" in the Seoul metropolitan area's public sentiment.

Some lawmakers advocated for policy revisions, citing strong local opposition. Rep. Jeon Hyun-hee, whose constituency is in Seoul, described the situation as a "serious crisis" and argued that one-homeowners, even if non-resident, should be protected as they are difficult to classify as speculators. Others suggested that the public perceives the tax changes as an attempt to control housing prices solely through taxation, especially amid concerns about insufficient supply.

Conversely, some within the party acknowledged the need for tax reform. Rep. Kim Nam-hee called for tax reforms centered on actual residency, particularly benefiting younger generations. Meanwhile, the opposition People Power Party strongly criticized the government's real estate supply measures as ineffective, demanding a fundamental policy shift. Seoul Mayor Oh Se-hoon expressed deep regret over the lack of prior consultation with the city on measures significantly impacting citizens' lives and the housing market.