Ruling party strongly requests removal of distinction for single-home owners in real estate tax

South Korea's Democratic Party has formally requested a significant overhaul of the comprehensive real estate tax (Jongbuse) system, particularly concerning single-home owners. During a high-level party-government meeting, the party strongly advocated for eliminating the distinction between owner-occupied and non-owner-occupied status for those owning just one property.

Park Sung-joon, the party's senior spokesperson, stated that the party also emphasized broadening the scope of acceptable reasons for single-home owners to be recognized as 'occupying' their residence, even if they are not living there due to unavoidable circumstances. This discussion signals a potential shift in how the tax burden is applied to individual homeowners.

Beyond the Jongbuse reform, the meeting addressed strategies to boost housing supply, focusing on younger generations and newlyweds. The party and government also explored various measures aimed at stabilizing rental prices. A key point of agreement was the need for faster housing development, including a proposal to delegate authority to local governments for approving smaller-scale redevelopment and reconstruction projects under 500 units.

This move is intended to expedite the construction process and is seen as a response to demands from local officials, such as those in Seoul. The party indicated a willingness to further discuss deregulation for private redevelopment and reconstruction projects, signaling a broader effort to address housing market concerns.