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๐Ÿ‡ฐ๐Ÿ‡ท South Korea /Economy & Trade

Ruling party slams government's real estate tax plan as 'punitive tax bomb'

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • South Korea's ruling People Power Party criticized the government's real estate tax reform plan as a "tax bomb" and "punitive tax" on homeowners.
  • Party leader Jang Dong-hyuk accused President Yoon Suk-yeol of imposing heavy taxes after selling his own apartment and becoming a non-homeowner.
  • Opposition parties also voiced criticism, with some calling the plan insufficient and others deeming it a "tax bomb" that will increase housing costs for renters.

South Korea's ruling People Power Party has strongly condemned the government's latest real estate tax reform package, labeling it a "tax bomb" and a "punitive tax" that unfairly targets homeowners.

The President sold his apartment in Bundang for 2.9 billion won, even taking out a loan for ํŽธ๋ฒ• (circumventing regulations). Then, immediately after becoming a non-homeowner, he imposed a tax bomb on the public.

โ€” Jang Dong-hyukJang Dong-hyuk, leader of the People Power Party, criticized President Yoon Suk-yeol's personal actions in relation to the tax reform.

During an emergency press conference, party leader Jang Dong-hyuk directly criticized President Yoon Suk-yeol, stating, "The President sold his apartment in Bundang for 2.9 billion won, even taking out a loan for ํŽธ๋ฒ• (circumventing regulations). Then, immediately after becoming a non-homeowner, he imposed a tax bomb on the public." Jang asserted that the government, unable to control housing prices, is now "targeting homeowners."

Rep. Jeong Jeong-sik, the party's floor leader, echoed this sentiment on Facebook, calling the reform a "tax bomb declaration." He warned that the burden would ultimately be passed on to renters, leading to soaring rental prices and increased economic hardship for ordinary citizens.

The government, unable to control housing prices, is now targeting homeowners.

โ€” Jang Dong-hyukJang Dong-hyuk accused the government of shifting blame and burden onto homeowners.

The criticism extended beyond the ruling party. The opposition Justice Party also found fault with the plan. Cho Kuk, head of the party's policy research institute, commented on Facebook that "tax equity normalization has been postponed, while exceptions and special provisions have been expanded." He questioned whether those benefiting from the reforms and grace periods would even support the Democratic Party.

In one word, it's a 'tax bomb declaration'.

โ€” Jeong Jeong-sikJeong Jeong-sik, the People Power Party's floor leader, described the tax reform plan.

Kim Jong-hoon, leader of the Progressive Party, argued that targeting only a few luxury apartments in Gangnam would not fundamentally alter real estate inequality. He noted that the plan contradicts the government's previous emphasis on strengthening property taxes and would likely do little to curb the preference for owning a single, high-value property.

The burden will eventually be passed on to rental prices, causing them to soar and spreading the economic burden to the poor.

โ€” Jeong Jeong-sikJeong Jeong-sik warned of the potential impact of the tax reform on renters.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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