Kim Byung-wook "This Year, More Than 5% Will Be Subject to Comprehensive Real Estate Tax... Opinion Leaders Mainly in the Seoul Metropolitan Area"

Minister Kwon Chil-seung of the Ministry of SMEs and Startups attended the economic sector interpellation held at the National Assembly plenary session on the 20th and is seen conversing with Kim Byung-wook, a member of the Democratic Party of Korea. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Park Cheol-eung] Kim Byung-wook, a member of the Democratic Party of Korea who proposed a bill to ease the comprehensive real estate holding tax (종합부동산세, 종부세) and property tax, predicted that "the number of households paying 종부세 this year will increase to more than 5% of the total." He argued that since the concept is a 'separate wealth tax' and the number of subjects has greatly increased due to rising house prices, the upper limit should be raised. He also emphasized that the relatively high proportion of subjects in the Seoul metropolitan area should be taken into account.

On the 23rd, Kim appeared on MBC Radio's 'Kim Jong-bae's Focus' and said, "I understand that the number of households subject to 종부세 was 3.5% last year, and I expect it to increase by more than 5% this year." He added, "There is a difference when judging nationwide versus focusing on Seoul and the metropolitan area."

He continued, "The economic impact and the fact that the leading public opinion groups are mainly in Seoul and the metropolitan area are important factors that must be seriously considered."

This was his response to criticism questioning whether easing 종부세 is a matter of public livelihood. Kim said, "The 종부세 standard set at 900 million KRW has been in place for 10 years. There is a huge difference between housing prices 10 years ago and now," emphasizing, "Should we still use that standard? Reflecting the current situation properly is the role of the legislature and the government."

On the same day, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said at the real estate market inspection meeting with related ministers, "From the perspective of quickly removing market uncertainties, we will review the issues raised so far and proceed with the consultation process between the government and ruling party as quickly as possible."