Ruling party leader calls for review of real estate tax reforms for non-residents

Kim Min-seok, leader of the Democratic Party of Korea, is urging a thorough review of the government's real estate tax reform proposals, particularly concerning non-resident single-home owners. Speaking at a high-level party-government consultation meeting, Kim highlighted the need to acknowledge diverse and unavoidable reasons for non-residency, ensuring no one falls through the cracks.

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For non-resident, single-home owners, we must broadly recognize the diverse and unavoidable reasons for non-residency and eliminate blind spots.

He specifically addressed the comprehensive real estate holding tax, suggesting a review of adjusting the basic exemption from 1.2 billion won to 900 million won and increasing the tax burden limit to 200%. Kim also raised concerns about the proposed shift from long-term holding special deductions to long-term residency income deductions for capital gains tax. While acknowledging the policy's positive direction towards promoting actual residency, he stressed the need to carefully assess its potential negative impact on the rental market.

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Regarding the comprehensive real estate holding tax, even if the current system is maintained, the tax burden for non-residents naturally increases due to rising official prices. Therefore, a deep deliberation is needed on tax reforms such as adjusting the basic exemption for non-resident, single-home owners from 1.2 billion won to 900 million won and increasing the tax burden limit to 200%.

Emphasizing that expanding housing supply is key to residential stability, Kim called for mobilizing all available means to secure land and boost housing construction. He pledged that the Democratic Party would fulfill its legislative responsibilities as the ruling party by expediting approval processes and dismantling regulations. Kim also stressed the importance of closer ties between the party, government, and presidential office, stating a shared goal for the success of the current administration.

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The conversion of the long-term holding special deduction to a long-term residency income deduction for capital gains tax has a positive directionality as a housing market policy centered on actual residency, but we must carefully examine whether the chain reaction of system changes will have a negative impact on the rental market.

Prime Minister Han Duck-soo and Presidential Chief of Staff Kang Hoon-sik echoed Kim's sentiments, acknowledging the significant impact of real estate policies on citizens. They agreed on the need for meticulous review and coordinated efforts to refine and implement policies swiftly, aiming to improve people's lives. Kang Hoon-sik further clarified that the proposed tax reforms were presented as a starting point for public feedback, not a final decision, underscoring the administration's commitment to listening to public opinion and incorporating reasonable suggestions.

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The key to residential stability is expanding supply. We must mobilize all means and methods that can be devised for comprehensive land acquisition and real estate supply expansion.