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🇰🇷 South Korea /Economy & Trade

Seoul Democrats urge caution on taxing single-home owners

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • The Democratic Party's Seoul chapter expressed concerns over the government's proposed tax reform plan, particularly its focus on increasing property taxes for non-resident single-home owners.
  • The party plans further discussions to assess the reform's market impact, with some members suggesting the need for more exceptions to ensure a smoother implementation.
  • Concerns were also raised about potential rent increases for tenants if housing ownership benefits are removed, impacting younger generations.

The Democratic Party's Seoul chapter has voiced concerns regarding the government's recent "August 3rd" tax reform package, specifically its proposal to strengthen property taxes for non-resident single-home owners. The party convened a real estate policy meeting at the National Assembly building on Thursday, where participants discussed the potential market repercussions of the proposed changes.

There were questions raised about the fairness of the tax burden on non-resident single-home owners, and the opinion was that there is a need for more exceptions to allow the system to land smoothly.

— A participantExpressing concerns about the equity of the proposed tax increases for single-home owners.

During the two-hour meeting, which included nine National Assembly members and 27 Seoul city council members, several attendees criticized the reform plan. One participant noted that concerns were raised about the fairness of increased tax burdens on non-resident single-home owners, suggesting that additional exceptions might be necessary for a smoother policy transition. Another member expressed worry that eliminating benefits tied to housing ownership periods could lead to increased rental prices, negatively affecting tenants.

If you remove the benefits for the housing holding period, rents will go up, and people who rent won't like that, so we need to make improvements during the National Assembly review process.

— A participantHighlighting the potential negative impact on renters if housing ownership benefits are reduced.

Some attendees also reported that public sentiment towards the government's tax reform plan appears unfavorable. The discussion touched upon the differing supply timelines for apartments, which typically take four to five years to build, compared to non-apartment housing. Kim Young-bae, a National Assembly member, stated after the meeting that there was significant concern about the proposed increase in property taxes for non-resident single-home owners, and the party intends to focus on this aspect. The group also committed to monitoring the challenges faced by young adults in securing housing.

The public sentiment towards the (August 3rd government tax reform plan) doesn't seem very good.

— A participantReporting on the perceived negative public reaction to the tax reform.

Meanwhile, the government is scheduled to hold a meeting of relevant ministers on August 12th to review its real estate supply measures. The meeting, to be chaired by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, will include ministers from various departments. The relocation of the Korea Racing Authority site in Gwacheon is also on the agenda for discussion.

There were many questions raised about the non-resident single-home owner (strengthening of property tax), so there was talk of paying attention to that part and intensively checking it.

— Kim Young-baeConfirming the party's focus on the property tax aspect of the reform.
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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