[Yeouido Interview] 100,000 Temporary Two-Home Owners Benefit... Law to Ban 'Service Dog Benefit Abuse' Also Enacted

Bills Proposed by Representative Ryu Seong-geol Focus on Public Welfare, Social Security, and Stability of Ordinary Citizens' Lives

Ryu Seong-geol, member of the People Power Party./Photo by Yoon Dong-ju doso7@

[Asia Economy Reporters Lee Ji-eun and Geum Bo-ryeong] Reviewing the bills primarily proposed by Ryu Seong-geol, a member of the People Power Party, most focus on livelihood, welfare, and stabilizing the lives of ordinary citizens. Notably, there are bills aimed at alleviating the increased tax burden caused by the rapid rise in housing prices.

According to the National Assembly Legislative Information System on the 27th, out of the 14 bills Ryu proposed as the main sponsor this year, 10 are related to livelihood issues, including amendments to the Comprehensive Real Estate Tax Act, Restriction of Special Taxation Act, Income Tax Act, and the Welfare Act for Persons with Disabilities.

The amendment to the Comprehensive Real Estate Tax Act he proposed is estimated to benefit about 100,000 people, including temporary two-homeowners. Under the existing Comprehensive Real Estate Tax Act, a single household owning one home is excluded from the one-homeowner category if they purchase a new home for moving purposes but do not immediately sell the previous home, thus becoming a temporary two-homeowner. The same applies when a home is acquired through inheritance or when an additional low-priced home in a provincial area without speculative intent is held. In his amendment, Ryu considered temporary two-homeowners and low-priced provincial homes as one-homeowners. Additionally, for elderly and long-term holding single-homeowners meeting certain conditions, the payment of the comprehensive real estate tax is deferred until the time of inheritance, gift, or transfer of the home, thereby reducing the burden on actual users.

Ryu stated, "The basic principles of taxation are efficiency and fairness," and pointed out, "The comprehensive real estate tax has problems with both." He added, "Especially, there is a significant tax difference between single-homeowners and two-homeowners. Since the tax is imposed based on the number of homes rather than by aggregation or amount, fairness issues arise among different economic actors."

A professional committee member of the National Assembly’s Strategy and Finance Committee also noted in the bill review report, "The comprehensive real estate tax differs in the deduction amount applied when calculating the tax base and the application of tax credits for elderly and long-term holders depending on whether one is a single-homeowner. If one is treated as a two-homeowner due to temporary home ownership, the taxpayer’s tax burden may increase significantly."

Ryu Seong-geol, member of the People Power Party./Photo by Yoon Dong-ju doso7@

Last month, a tax support bill for farmers was prepared. Currently, tax credits for contributions to the Rural and Fishing Village Win-Win Cooperation Fund, exemption from interest (dividend) income tax on cooperative deposits and shares, and special corporate tax treatment for cooperative corporations are applied but are set to expire on December 31 this year. Ryu’s partial amendment to the Restriction of Special Taxation Act includes extending the sunset clause by three years. This was deemed necessary to provide tax benefits to farmers facing difficult conditions due to expanded agricultural market liberalization, aging rural populations, widening income gaps between urban and rural areas, and decreasing rice consumption.

He has also proposed a bill related to the issuance of assistance dog tags to protect the rights of persons with disabilities. Under current law, the Minister of Health and Welfare can issue assistance dog tags for assistance dogs for persons with disabilities. Persons with disabilities or trainers accompanied by assistance dogs bearing these tags cannot be refused access to public transportation or public places without just cause. However, social problems arose when individuals abused this by dressing their pet dogs in clothing with assistance dog markings to enter public places. The bill aims to regulate this by imposing a fine of up to 3 million won for putting assistance dog markings on pet dogs.

Although conservative governments or parties are often framed as uninterested in ‘welfare,’ Ryu explained that it is merely a ‘difference in methodology.’ He said, "We need growth and job creation; although the methods differ, we (the ruling party) all aim for a welfare state," adding, "It’s just that the policies are different."