Joo Ho-young: "Cheong Wa Dae's Directed Law... Will Cause Many Side Effects"
Basic Deduction for Comprehensive Real Estate Tax Raised from 900 Million KRW to 1.2 Billion KRW
Proposals Include Floor Area Ratio Increase and Abolition of Seoul's Floor Limit Restrictions
Joo Ho-young, floor leader of the United Future Party, holds an emergency press briefing on real estate measures at the National Assembly on the 29th. Photo by Undongju doso7@
[Asia Economy Reporter Lim Chun-han] The United Future Party announced on the 29th that “from 2022, we will supply ‘1 million homes of one’s own’ in areas where anyone would want to live over the next 10 years,” adding, “We will reduce the excessive tax burden imposed on single-home owners and ease financial regulations so that anyone in the nation can secure their own home through effort.”
On the same day, Floor Leader Joo Ho-young and Policy Committee Chairman Lee Jong-bae held an emergency press briefing at the National Assembly to present these real estate measures.
Floor Leader Joo criticized, “The laws created by the Democratic Party of Korea under the Blue House’s directive have no basis to calm the real estate market and will rather cause many side effects,” adding, “The 22 real estate policies have ended in failure, and I believe these bills will also fail.”
Floor Leader Joo emphasized, “Since experts have differing opinions on real estate laws, public hearings should be held and expert opinions extensively gathered before making decisions,” and “Tax laws and rates can be a serious infringement on the people, so they must be agreed upon by both ruling and opposition parties with public consent.”
Policy Committee Chairman Lee pointed out, “The Democratic Party unilaterally submitted real estate bills to the full committee meeting and forced their passage, ignoring the National Assembly Act and the principle of bipartisan consultation,” and “Although the Moon Jae-in administration announced 22 real estate policies, housing prices and jeonse prices in Seoul and the metropolitan area skyrocketed, causing only polarization.”
Chairman Lee said, “Ordinary citizens screamed at their property tax bills, and even single-home owners and actual demanders were hit with heavy comprehensive real estate taxes,” adding, “The dreams of ordinary citizens and youth to own homes have been shattered.”
The United Future Party announced real estate supply measures including ▲significant increase in floor area ratio ▲abolition of Seoul’s floor limit regulations ▲relaunch of redevelopment projects in station areas ▲separate establishment of living safety standards ▲conversion of commercial and office buildings in urban areas into residential use.
Regarding tax burden reduction and financial regulation easing, the party stated, “We will raise the basic deduction for the comprehensive real estate tax for single-home owners from 900 million won to 1.2 billion won, and legislate the fair market value ratio, which has been increasing annually through enforcement ordinances, at 80%,” adding, “We will greatly expand deduction benefits for elderly single-home owners and long-term homeowners to ensure that those holding homes for actual residence do not suffer from punitive taxation.” Other measures include ▲abolition of capital gains tax surcharges ▲maintenance of tax benefits for registered rental business operators ▲expansion of acquisition tax reduction targets ▲easing of financial regulations such as LTV ▲improvement of unreasonable subscription systems ▲introduction of a public mortgage system ▲and implementation of post-construction sales.
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