Lowering Real Estate Taxes and Switching to a Volunteer Military System... Ruling Party Targets Voter Sentiment

Kwang-jae Lee "Increase Comprehensive Real Estate Tax Threshold"
Yong-jin Park Proposes Volunteer Military System and Female Military Training

Yoon Ho-jung, the Emergency Committee Chairman of the Democratic Party of Korea, is giving a greeting at the preliminary primary election held on the morning of the 18th at the central party office in Yeouido, Seoul, to select the party representative candidate of the Democratic Party of Korea.
[Image source=Yonhap News]

[Asia Economy Reporter Heo Midam] The Democratic Party of Korea is pouring out measures to recover public sentiment after its crushing defeat in the April 7 by-elections. The party has decided to review supplementary measures for the current real estate policy and has proposed various measures to regain public trust, including raising issues about fairness in military service.

On the 18th, Lee Kwang-jae, a member of the Democratic Party of Korea, appeared on KBS 1TV's 'Sunday Diagnosis Live' and said, "During former President Roh Moo-hyun's administration, the comprehensive real estate tax was imposed on the top 1%, but currently, in places like Seoul, 16% are subject to the tax, which is too many." He stated that it is realistic to significantly raise the current comprehensive real estate tax threshold, which is set at an official land price exceeding 900 million won.

When asked how much the tax threshold should be raised from 900 million won, Lee said, "You can guess if you think about the 1% standard," adding, "I believe it should be discussed jointly by both ruling and opposition parties."

He also said, "Even for households with only one home, the comprehensive real estate tax is imposed," and added, "For those who say they cannot pay the tax, it is necessary to defer taxation, meaning to switch to a system where the tax is paid when the property is sold later."

Yoon Ho-jung, the newly elected floor leader of the Democratic Party, also stated in his policy speech on the 16th, "If there are problems with the government's real estate policies, we will boldly change them," and added, "While strictly preventing speculation, we will actively consider expanding supply and providing financial and tax support for genuine homeowners with one house."

Jeong Cheong-rae, also from the same party, is reportedly preparing amendments to the comprehensive real estate tax, local tax, and income tax laws to reduce the tax burden on single-home owners and capital gains tax for owners of two homes. The amendment is expected to raise the comprehensive real estate tax threshold for single-home owners from an official land price exceeding 900 million won to exceeding 1.2 billion won.

Park Yong-jin, member of the Democratic Party of Korea. [Image source=Yonhap News]

In addition, the ruling party is striving to regain the support of the 'I-dae-nam' (men in their 20s) voter base, which overwhelmingly supported the People Power Party in the April 7 by-elections.

Park Yong-jin, a Democratic Party lawmaker who has declared his intention to run for the next presidential election, proposed a "transition to an all-volunteer military system" and "mandatory military training for both men and women" in his book 'Park Yong-jin's Political Revolution,' published on the 19th. The plan involves abolishing the current conscription system and conducting basic military training for both men and women for 40 to 100 days to train them as reservists.

Park explained this proposal on Facebook the day before, saying, "It is about promoting the development of an elite strong military based on a volunteer system and gender-equal service system, focusing on the cultivation of reservists with cutting-edge weapon systems and combat capabilities."

In response, Jin Joong-kwon, a former professor at Dongyang University, criticized Park, saying, "While the volunteer system is a long-term goal, it is currently not feasible. The biggest problem is the budget," and added, "This is populism aimed at gaining votes from the 2030 generation with lip service that is not feasible."

Earlier, on the 15th, Kim Nam-guk, also a Democratic Party lawmaker, posted on his Facebook, "I will strive to ensure that discharged soldiers receive proper treatment," and said, "We will establish legal grounds so that professional experience gained during military service can be recognized in hiring by local governments nationwide through amendments to the National Public Service Act."