Won Hee-ryong, Minister of Land, Infrastructure and Transport, is meeting with reporters at the Ministry of Land, Infrastructure and Transport press room in the Government Sejong Complex on the 21st, answering questions related to the recent real estate market. Won Hee-ryong, Minister of Land, Infrastructure and Transport, stated on the 21st, "I believe that the burden on the public related to real estate, such as the official price realization rate and comprehensive real estate tax, should be reduced to at least the 2020 level."
On the same day, Minister Won met with reporters at the Ministry of Land, Infrastructure and Transport press room in the Government Sejong Complex and said, "I think the proposal made by the Korea Institute of Public Finance last time is insufficient. We are reviewing a more strengthened plan."
The government held a public hearing on the revised official price realization rate on the 4th. At this event, the Korea Institute of Public Finance, which conducted the research on the revised official price roadmap, presented a final plan to freeze next year's official price realization rate at this year's level and postpone the revision of the realization rate roadmap by one year after observing market conditions beyond next year.
Minister Won announced a policy to reduce the tax burden even further than this. Due to the growing concern over the reversal phenomenon where actual housing transaction prices fall below the official prices caused by the recent sharp drop in housing prices following interest rate hikes, the Ministry plans to revise the Korea Institute of Public Finance's amendment more significantly to lower the holding tax burden.
Minister Won said, "Within the promise of 'normalizing the real estate market' made by the Yoon Seok-yeol administration, excessive tax burdens will be clearly alleviated so that the public can feel it," adding, "We will make every effort to achieve this."
He added, "I fundamentally believe that the strategy of controlling the real estate market through taxes such as comprehensive real estate tax, capital gains tax, and acquisition tax is not correct," and said, "We are conducting policy consultations among relevant authorities so that the public can clearly feel this will and policy." The government plans to prepare and announce the revised official price realization rate by the end of this month at the latest.
Regarding the recent decline in real estate transaction prices, Minister Won expressed concern about rapid fluctuations but emphasized plans to induce a soft landing and stabilization.
Minister Won said, "A specific price range is not a policy goal," and added, "The government's task is to prepare for overall market shocks such as rapid fluctuations within a short period, transaction interruptions, disappearance of demand, and disruption of supply financing."
Regarding the additional lifting of regulated areas, he said, "I do not believe that lifting regulations will change price trends or revive transactions," and added, "Interest rates, economic conditions, and expectations have a real impact on transactions." He also said, "It is important to prevent situations where people cannot move because transactions are not happening despite needing to move, or where loans are suddenly blocked without notice, cutting off the housing ladder."
Regarding the revival of registered rental businesses, specific details will be announced within the year. Minister Won said, "There could be various options, such as extending the registered rental period from 10 to 20 years or adjusting the deposit increase limit from 5% to a higher rate." However, he added, "It is necessary to prevent problems such as the registered rental business system being used as a tool for housing hoarding due to excessive benefits for rental businesses," and said, "The role as a supplier offering good rental properties should be recognized by the public."
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