Ruling Party Real Estate Special Committee Also Considers Easing Acquisition and Registration Taxes... "Transaction Taxes That Hinder Homeownership Must Be Reduced"

Kim Jin-pyo, Chairman of the Real Estate Special Committee of the Democratic Party of Korea, is attending the Real Estate Special Committee meeting held at the National Assembly Members' Office Building on the 12th and delivering a greeting. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Jeon Jin-young] The Democratic Party's Special Committee on Real Estate held its first meeting on the 12th and decided to consider easing tax burdens such as acquisition and registration taxes to prepare measures focused on actual homebuyers.

Kim Jin-pyo, the committee chairman, told reporters after the meeting, "We will review all tax burdens related to transactions," adding, "If there are transaction tax burdens that hinder or obstruct actual homebuyers without homes from purchasing their own homes, we need to selectively ease them."

Kim said, "However, under no circumstances will there be any easing that reignites speculative demand," emphasizing caution by stating, "If the government is perceived to be loosening real estate regulations, especially regarding capital gains tax, speculative demand could resurface."

He added, "In efforts to suppress speculative demand, acquisition and registration taxes and capital gains taxes have increased together. If these become decisive obstacles for the homeless to realize their dream of homeownership, that should not happen," and explained, "We had diverse discussions today on what aspects can be adjusted considering these factors."

The proposal by party leader Song Young-gil to ease the Loan-to-Value (LTV) ratio to 90% is also under the committee's discussion. Regarding the LTV easing plan, Kim said, "It needs to be reviewed." When asked by reporters if it is currently under consideration, he replied, "Yes."