South Korea's Ruling Party Backs Tax Reforms, Criticizes Opposition's 'Fear-Mongering'

The Democratic Party of Korea has voiced strong support for the government's recently announced 2026 tax reform plan, characterizing it as a necessary step towards normalizing taxation to foster growth and support citizens' livelihoods. The party sharply criticized the opposition People Power Party, accusing them of repeating "old-fashioned fear-mongering" by focusing solely on potential tax hikes while ignoring the plan's supportive measures.

Han Byung-do, acting leader and floor leader of the Democratic Party, stated at a party meeting that the reform package is designed to actively support strategic industries and domestic investment. He emphasized that the plan enhances benefits for ordinary people, youth, and regional communities, while rationally adjusting tax incentives that are either ineffective or disproportionately concentrated among a select few. "This is a tax normalization plan," Han asserted.

Regarding real estate tax reforms, Han explained that the plan aims to protect homeowners living in their primary residences. It will rationally adjust benefits excessively concentrated in ultra-high-priced homes and non-residential properties, aligning them with property values and actual residency status. Specifically, the basic deduction for comprehensive real estate holding tax for primary residences will increase from 1.2 billion won to 1.4 billion won. Additionally, homeowners who have owned property for over 10 years and whose transfer value is below 3 billion won will receive adjustments to capital gains tax deductions.