Property Tax Reduction Plan for Single-Homeowners to Take Effect 'Soon' After the 29th

Financial Services Commission Chairman Eun Sung-soo is seen conversing with ministry officials at the '9th Real Estate Market Inspection Meeting' held on the morning of the 28th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Park Cheol-eung] The government and ruling party's plan to adjust real estate official prices to market value and ease property tax burdens for single-homeowners is expected to be announced after the 29th.

According to political circles on the 28th, opinions within the Democratic Party of Korea regarding the criteria for easing property tax burdens have not yet been consolidated, and more time is needed for consultations with the government.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated at the real estate market inspection meeting that "after discussions at the party-government meeting soon, the party and relevant ministries will make an announcement." Although an announcement on the 29th was anticipated, it appears more time is required.

Initially, the Democratic Party intended to lower property taxes for single-homeowners with official prices below 600 million KRW, but some lawmakers within the party proposed expanding the threshold to 900 million KRW. However, the party's Policy Committee has not reviewed this proposal.

The government is also reportedly opposed to expanding the threshold to 900 million KRW, as this would include homes with actual market prices exceeding 1 billion KRW, which they consider inappropriate. The reduction rate is also likely to be decided at a level lower than 0.05 percentage points.

Regarding the official price realization rate, a plan to raise it to 90% of market value by 2030 is favored. Currently, the realization rate for apartments and other multi-family housing stands at about 69%.