'Officially Assessed Property Prices Virtually Frozen'... Blue House Also Shows Support, Likely to Accelerate Tax Burden Relief

The Party and Government Announce Measures to Ease Burden of Official Housing Prices... Gap Remains on Postponement of Capital Gains Tax Surcharge

[Asia Economy Reporters Ryu Jeong-min and Gu Chae-eun] The Blue House stated on the 20th that there is "no separate official position" regarding the ruling party and government’s discussion on measures to ease the burden of official housing prices. However, the internal atmosphere at the Blue House strongly supports the need for flexibility considering the situational variable of COVID-19.

Although the Blue House is not taking a leading role in pushing for real estate burden relief, it is effectively backing the ruling party and government’s announcement. This aligns with the practical view that the difficulties faced by the public, including small business owners and self-employed individuals, are increasing due to the prolonged COVID-19 pandemic.

Compared to previous discrepancies between the ruling party and the Blue House, such as the postponement of the increased capital gains tax, this measure is likely to be implemented swiftly with coordinated efforts among the party, government, and Blue House.

[Image source=Yonhap News]

However, although it was not included in the ruling party and government’s discussion that day, if the proposal for a ‘comprehensive reexamination of official price realization’ suggested by Lee Jae-myung, the Democratic Party’s presidential candidate, on SNS on the 18th is pursued, there remains a possibility of escalating conflict between the party and the Blue House.

This proposal directly contradicts the Moon Jae-in administration’s ‘Official Price Realization Roadmap’ (announced in November 2020). In particular, Lee’s policy differentiation, which focuses on easing real estate taxes, has drawn criticism for conflicting with the Democratic Party’s existing policy stance of lowering transaction taxes while raising holding taxes. However, Lee emphasizes policy flexibility by stating, "The lives of the people come before beliefs."