[Asia Economy Reporter Park Cheol-eung] Criticism of the real estate measures under discussion by the Democratic Party of Korea has come from within the party leadership.
Kang Byung-won, a Supreme Council member of the Democratic Party, said at the Supreme Council meeting on the 17th, "We need to reconsider the policies being discussed by the party's real estate special committee," adding, "It is concerning that they are discussing raising the comprehensive real estate tax threshold, which currently applies only to high-priced homes with a publicly announced land price of 900 million KRW or a market price of 1.5 billion KRW or more, and further postponing the heavy capital gains tax on multiple homeowners."
He continued, "Reducing the tax burden on multiple homeowners and owners of high-priced homes goes against the basic direction of our government's real estate policy, which aims to curb speculation and strengthen property taxes," and pointed out, "In particular, the heavy capital gains tax was postponed after the July 2020 policy announcement and has not yet been implemented. Further postponement sends a message to multiple homeowners that if they hold out, they will win, which undermines market stabilization."
He also delivered a direct blow, saying, "Both the diagnosis and the prescription are flawed."
Kang said, "I hope the real estate special committee is not a committee that cuts taxes for the wealthy," and added, "If it empathizes with the suffering of non-homeowning citizens and proposes realistic policies and policies to recover unearned income, I am confident it will present a hopeful future."
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