與 "Multi-homeowners Won't Endure" vs 野 "It Will Rather Raise House Prices"

[Asia Economy Reporter Park Cheol-eung] On the 10th, the ruling and opposition parties evaluated the real estate measures in completely opposite directions. The ruling party said that multi-homeowners would not be able to endure and would put their properties on the market, while the opposition harshly criticized that it would rather result in raising house prices.

Ko Yong-jin, the ruling party whip of the National Assembly's Planning and Finance Committee and a member of the Democratic Party of Korea, appeared on MBC Radio's "Kim Jong-bae's Focus" on the 13th and said, "The ruling party and government consulted and the government announced it last Friday, and I am receiving it and legislating it," adding, "This bill was created with the policy goal of raising the tax rate significantly for multi-homeowners who own several houses besides their actual residence, telling them to sell and put them on the market."

He expressed the view that it has become difficult for multi-homeowners to endure. Ko said, "For owners of apartments with a market price of 2.5 billion won, the tax burden is expected to increase by about 60 million won compared to before, resulting in about 100 million won annually," and added, "Then, is this amount something that can be passed on to the jeonse tenants, or can it be borne by converting it to monthly rent? They may endure for a while, but I think it will be difficult in the long term. That is why there is a grace period for the capital gains tax surcharge until June 1 next year. The government and the party's goal is to sell by then."

Regarding supply expansion, he said, "It is not very easy," but added, "Increasing supply is definitely the direction." On the plan to lift the Greenbelt, he mentioned, "There are some disagreements internally. The Mayor of Seoul has consistently opposed it, and from the perspective of maintaining a pleasant city environment, deciding how to protect and lift these areas is not an easy matter."

Ko said, "There are various demands regarding reconstruction, but if done wrong, it could stimulate speculative demand and cause serious confusion in the real estate market," and warned, "If mishandled, it will be uncontrollable." He explained that while discussing housing supply measures, revitalizing reconstruction is a lower priority.

The United Future Party views the possibility of failure of the government and ruling party's real estate measures as high. Kim Jong-in, the United Future Party's emergency committee chairman, said at a meeting that day, "People who buy apartments worth several hundred million won have the ability to mobilize loans and cash," and added, "I am very skeptical that measures to tighten real estate by mobilizing tax systems without solving the fundamental background but only focusing on the results will succeed."

He continued, "When taxes are imposed, taxpayers have no choice but to adapt. If apartment taxes are increased, the burden on tenants will inevitably increase," and said, "Considering various situations, I cannot help but doubt whether these people have the ability to lead economic policy. If they cannot solve the problem, wouldn't it be wise to leave their positions?" putting pressure on them.

Song Seok-jun, chairman of the United Future Party's real estate special committee, also appeared on KBS Radio's "Kim Kyung-rae's Strong Current Affairs" that day and expressed concern, saying, "The excessive burden on multi-homeowners may have unintended consequences and could have a considerable negative impact on the local real estate market, contrary to the intended goal."

He also said, "If the holding burden on multi-homeowners increases, they are expected to sell, but if they try to switch to something else, it won't be profitable, so they won't change. Even general actual owners who are well-off may be able to bear the tax burden and hold on to their properties," he said.

Song said, "The chronic problem has been the lack of supply, but the supply measures are too idle," and added, "As a result, I am concerned that this measure may end up being a replay of the result that only caused house prices to soar beyond expectations."