Song Young-gil: "Comprehensive Real Estate Tax Exemption for Multi-Homeowners up to 1.1 Billion Won"

"Proposal for Party Resolution Adoption, Party Review Planned"
Five Pledges Including Raising Taxation Standards for Multi-Homeowners

Song Young-gil, the Democratic Party of Korea's candidate for Seoul mayor, is delivering a greeting at the 'Song Young-gil Walking Volunteer Corps Launch Ceremony' held on the 12th at the campaign office in Mugyo-dong, Jung-gu, Seoul. Photo by the National Assembly Press Photographers Group

[Asia Economy Reporter Park Jun-yi] Song Young-gil, the Democratic Party of Korea's candidate for Seoul mayor, announced a comprehensive real estate policy to raise the comprehensive real estate tax (CRET) threshold for multi-homeowners to 1.1 billion KRW and to exclude those unfairly subject to CRET, such as temporary two-household owners. The core of the pledge is to reduce excessive tax burdens.

On the 15th, Song held a press conference at the National Assembly Communication Office and explained, "I will decisively break away from the idea of using taxes as a punitive tool to control housing prices," adding, "I will reduce excessive tax burdens and respect the market."

He promised to raise the current CRET threshold for multi-homeowners to the same official price of 1.1 billion KRW applied to single-homeowners. Song pointed out, "While single-homeowners are exempt from CRET up to an official price of 1.1 billion KRW, multi-homeowners only have a CRET deduction of 600 million KRW," adding, "This causes a side effect where owners of two mid-to-low priced homes pay more taxes than owners of one high-priced home."

He also stated, "We will resolve unfair CRET issues" by excluding temporary two-household owners and two-homeowners including rural and low-priced homes from the CRET surcharge. He criticized, "It is unreasonable to impose excessive tax burdens on actual users under the pretext of strengthening CRET rates."

He emphasized the need to adjust the maximum tax burden cap rate to 110%. There have been criticisms that the property tax burden cap is high, leading to rapid increases in property tax. Currently, the tax burden caps are 105% for official prices under 300 million KRW, 110% for 300 million to 600 million KRW, and 130% for over 600 million KRW. He proposed easing this to 105% for up to 600 million KRW and 110% for over 600 million KRW.

He also argued that a more than 50% reduction in holding tax should be applied to "good landlords" who comply with a 5% rent cap and two-year lease contracts, aiming to reduce landlords' holding tax burdens.

For tenants' housing stability, he stated that the monthly rent deduction should be significantly expanded?from an official price range of 300 million KRW to 600 million KRW, and the deduction rate from 10?12% to 15?17%. For jeonse (lump-sum deposit lease), he urged raising the income deduction limit from 3 million KRW to over 5 million KRW and increasing the deduction rate from 40% to 80%.

Regarding criticism that his proposals contradict the Democratic Party's real estate policy stance, he responded, "If the CRET deduction for two-homeowners becomes 600 million KRW, fairness issues arise, so adjustments are necessary to reflect reality."

He added, "Seoul mayor candidate Oh Se-hoon and President Yoon Suk-yeol have talked about improving real estate taxation, but it requires the National Assembly to amend the law," and explained, "Please understand this as a sign of willingness to push for legislation from the candidate stage and to continuously improve any shortcomings."