Yoo Kyung-jun "Gangnam 2-home owners' comprehensive real estate tax increased sixfold in 3 years... Where does Moon intend to raise it to?"

On the 29th, a press conference titled "Call for a Complete Shift in Moon Jae-in Government's Real Estate Policy" hosted by the People's Solidarity for Participatory Democracy was held at the Blue House Fountain Plaza in Jongno-gu, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Lee Ji-eun] Amid President Moon Jae-in's directive to raise the comprehensive real estate holding tax (종부세), Yoo Kyung-joon, a member of the Future United Party, criticized it as "punitive taxation," stating that the 종부세 for two-homeowners in Gangnam has increased sixfold over the past three years.

On the 4th, Representative Yoo stated on Facebook, "Are you aware that the 종부세 for a single household with two homes in Gangnam has been raised by a staggering six times (608%?specifically 37.3%, 189.2%, and 78.2%) over the past three years by applying the three factors of official property price, fair market value ratio, and tax rate all together?"

Regarding President Moon's directive, Representative Yoo said, "It is regrettable that additional regulations and taxation are being imposed without reflection on the flawed policy that has forced young people to give up their dream of owning a home and pushed tenants into a corner," adding, "The policy still criminalizes homeowners and maintains a stance of strengthening punitive taxation."

He continued, "It is impossible to even estimate how much more the taxes will be raised," and "When examined closely, multi-homeowners are the largest suppliers in the housing rental market, so taxation on multi-homeowners inevitably gets passed on to tenants."

Representative Yoo predicted that taxation on multi-homeowners will reduce the supply of jeonse and monthly rental housing and cause rents to skyrocket. He urged that instead of fixating solely on punitive taxation, a groundbreaking plan to expand housing supply must be devised. He proposed, "We need to increase the supply of new housing sites within Seoul city and improve existing land efficiency through reconstruction and redevelopment," and "Rather than only regulating multi-homeowners, we should open an exit by abolishing the capital gains tax surcharge, among other measures."