Push to Ease Comprehensive Real Estate Tax... Raise Threshold from 900 Million to 1.2 Billion, Considering Top 1-2% Plan

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] On the 19th, with the launch of the Real Estate Special Committee within the Democratic Party of Korea, various measures to ease the comprehensive real estate tax (종부세) imposition criteria are being considered.

Although no party-level conclusion has been reached yet, within the party, there are discussions about narrowing the 대상 (tax subjects) of the comprehensive real estate tax to the top 1-2% or raising the imposition threshold from the current 900 million KRW to 1.2 billion KRW.

A ruling party policy committee official told this outlet, "Among various measures related to easing the 종부세, discussions are ongoing about which alternative would be best," adding, "No strong proposal has been selected yet; we are still gathering ideas."

Currently, proposals within the party include adjusting the 종부세 기준 (criteria) to the top 1-2% 'ratio' or raising the threshold to 1.2 billion KRW. Democratic Party lawmaker Lee Kwang-jae suggested, "The 종부세 기준 should be significantly raised," proposing the 'top 1%' as the 기준 for 종부세 taxation. Lawmaker Jung Cheong-rae is preparing an amendment that would reduce holding tax for single-homeowners and capital gains tax burden for owners of two homes.

Meanwhile, the Democratic Party plans to form the Real Estate Special Committee on this day and begin actively readjusting real estate policies. The committee will include lawmakers from the Land, Infrastructure and Transport Committee, the Strategy and Finance Committee, the Political Affairs Committee, and the Public Administration and Security Committee, as well as private experts and local government heads. The committee chairperson is Representative Jin Sun-mi, chair of the Land Committee.

Yoon Ho-jung, Emergency Response Committee Chair and floor leader, stated at the emergency meeting, "The party's Real Estate Special Committee will review major real estate issues such as housing supply, housing finance, housing taxation, and residential welfare, and prepare countermeasures."