Choo Kyung-ho: "If the Comprehensive Real Estate Tax Amendment Is Not Passed, Up to 500,000 People Will Face Heavy Taxation"

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kwon Haeyoung] On the 29th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated that if the amendment to the Comprehensive Real Estate Tax Act fails to pass, "about 400,000 people, or up to 500,000 people if couples jointly own property, could be subject to additional taxation."

Deputy Prime Minister Choo said at the National Assembly Budget and Accounts Special Committee plenary session that morning, "Considering the National Tax Service's tax collection administrative procedures, the matter must be finalized by the end of August at the latest to provide prior notice and avoid additional taxation."

He added, "If this is delayed, we will have no choice but to impose additional taxation measures according to the current laws this year," and said, "I hope it will be smoothly concluded through prompt and amicable consultations between the ruling and opposition parties."

Regarding criticism that the Comprehensive Real Estate Tax relief plan is a 'tax cut for the wealthy,' he pointed out, "Over the past several years, real estate-related tax systems have been excessively utilized for real estate market management," "During that time, real estate prices have, so to speak, surged, and the number of taxpayers subject to the Comprehensive Real Estate Tax has increased too much compared to the original purpose of introducing the tax, and the burden has also increased significantly." He continued, "To reduce this year's Comprehensive Real Estate Tax burden to the 2020 level, the government initially lowered the fair market value ratio to 60%, but that alone is insufficient," adding, "If a special deduction of 300 million KRW is added for single-home owners, it will return to the 2020 level."

Furthermore, Deputy Prime Minister Choo pointed out, "People have been very worried and struggling over real estate issues for the past several years."

He stated, "This applies to the overall real estate market and the rental market as well; ultimately, supply must be expanded to meet demand," and added, "Basically, the rental market stabilizes when rental supply increases, and the same goes for housing prices." He then said, "The supply side should not only be the government and public institutions but also private capital and private projects should actively participate, enabling a proper division of roles between the public and private sectors to be revitalized."