Park Sun-ho, Deputy Minister of Land, "I Cannot Agree to Lowering Capital Gains Tax to Provide an Exit for Multi-Homeowners"

[Asia Economy Reporter Yoo In-ho] Park Seon-ho, the 1st Vice Minister of the Ministry of Land, Infrastructure and Transport, stated that he "cannot agree" with the claim that transaction taxes such as capital gains tax should be lowered to open an exit for multi-homeowners.

On the 9th, Vice Minister Park appeared on tbs radio's 'Kim Eo-jun's News Factory' and, when asked about the plan to lower transaction taxes, said, "If the market is given the belief that capital gains are not properly collected, it will not be possible to block the motivation to buy many houses."

Vice Minister Park once again emphasized the policy of strengthening taxation on multi-homeowners. He said, "I believe that consistently operating a system to collect capital gains in the market will be more helpful for market stability," adding, "We also need to simultaneously implement policies to continuously increase the tax burden on excessive real estate owners."

Vice Minister Park also presented measures to supplement real demand and supply policies following the aftermath of the June 17 real estate measures. He said, "Apartments in the three new towns will be supplied at prices more than 30% cheaper than typical apartment prices in Seoul," and added, "Through the point system, those who have been without a home for a long time and have many dependents will be given priority, but for the '3040' younger generation purchasing their first home or young newlyweds, a separate large allocation will be made so that they can receive quality housing quickly at affordable prices."

He continued, "In addition to the plan for 300,000 households in the five 3rd new towns and the metropolitan area, we plan to supply more than 70,000 households annually in downtown Seoul," adding, "This year alone, about 53,000 apartments will be completed in Seoul, which is the largest volume in the past 10 years."

Regarding the tightening of jeonse loan regulations starting from the 10th, Vice Minister Park evaluated it as "a measure to block gap investment, that is, purchasing houses with jeonse deposits involved." He explained, "While some people may face difficulties, it is necessary to keep in mind that gap investment has driven up house prices in the metropolitan area, making it difficult for real demanders to own homes."

When asked what he would do if the twenty-second real estate measure does not work, Vice Minister Park replied, "The number of measures is not important. It is necessary to respond wisely and quickly to changing market conditions while adhering to principles," adding, "If we strongly respond to speculation and make thorough efforts to supply affordable housing to real demanders, house prices will tend to stabilize."