Hong Nam-ki: "Freezing Official Prices Is Not a Panacea... Misunderstanding of 'Tax Bomb' in Comprehensive Real Estate Tax"

[Image source=Yonhap News]

[Asia Economy Reporter Junhyung Lee] Hong Nam-ki, Acting Prime Minister and Deputy Prime Minister for Economy, stated on the 19th, "Freezing the official real estate prices is not the best solution."

During the government questioning session at the National Assembly, in response to a real estate-related question from Shim Sang-jung of the Justice Party, Deputy Prime Minister Hong said, "Is freezing the official prices aligned with social justice?" and added, "I would like to ask this again politely."

He said, "If the government had considered the upcoming election, would it have announced the increase in official prices?" and added, "The government simply announced the results of its investigation." He further stated, "Artificially freezing or adjusting the figures sounds like a directive to continue doing so in the future," and "I find it difficult to agree."

Regarding the proposal to provide loans up to 90% of the house price to those without homes, he said, "It is not something I can easily agree with," and added, "We need to examine whether such a policy is desirable, systemically feasible, and whether financial institutions can support it."

On the comprehensive real estate holding tax, he said, "Only 3 to 4% of the population are subject to this tax, and even I have never paid it," expressing regret that "it is misunderstood as a tax bomb falling on the entire population."