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Yoon Welcomes Relief on Property Tax Burden: "Must Clearly Inform Citizens of Benefits"

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Yoon Welcomes Relief on Property Tax Burden: "Must Clearly Inform Citizens of Benefits"

President Yoon Suk-yeol, on the 22nd, aligned with the government's announcement of official property prices, emphasized that "it is important for the people to receive tangible benefits" and instructed that the government's policy direction be clearly communicated to the public. Since outcomes that allow citizens to directly feel benefits such as the easing of property holding taxes have emerged, the intention is to properly convey the policy operation stance. This also reflects a determination not to cause the same confusion as seen recently during the working hours reform process, where issues in policy promotion were revealed.


According to the presidential office on the 23rd, after the Ministry of Land, Infrastructure and Transport announced the '2023 Official Apartment Prices,' President Yoon instructed the presidential office to provide additional explanations, saying, "Please accurately inform the public about the government's policies and their effects." A key official from the presidential office elaborated, "This decision is based on the judgment that it is more effective for the presidential office to also emphasize and communicate the government's policy announcements to the public, rather than leaving it solely to the government."

Yoon Welcomes Relief on Property Tax Burden: "Must Clearly Inform Citizens of Benefits" [Image source=Yonhap News]

President Yoon is reported to have focused on the fact that the official property price decline will significantly reduce citizens' property holding taxes. Restoring housing official prices to the 2020 level is one of President Yoon's core pledges and signifies that a major pillar of the government's real estate national agenda has been achieved. Economic Chief Secretary Choi Sang-mok emphasized, "Due to the reduction in the official price realization rate and the normalization of real estate taxation pursued since the launch of the Yoon Suk-yeol administration, the burden of property holding taxes on citizens has decreased by more than 20% compared to 2020," adding, "We believe President Yoon has firmly fulfilled the promise made to the people."


The instruction to accurately communicate the effects of government policies stems from concerns over reduced tax revenues, including from the comprehensive real estate holding tax. Although the tax revenue shortfall is expected to increase with the comprehensive real estate tax reform applied from this year, the emphasis is on the fact that citizens' burdens are reduced and welfare benefits are increased. The government also anticipates decreases in insurance premiums for regional health insurance subscribers and in the purchase amounts of national housing bonds paid during real estate registration, aside from real estate holding taxes.


The presidential office's statement regarding the detailed provisions of the U.S. government's semiconductor law guardrail clauses as "a result of close consultations between our government and the U.S. government since last year" is also part of President Yoon's policy promotion directive. Since both the president and the government have actively requested the U.S. side to ensure that Korean companies receive sufficient support, this reflects the intention to accurately convey this national governance stance to the public.


The presidential office has clearly expressed its determination to accurately inform the public about all processes including the government's policy directions, decisions, and effects going forward. It views the current confusion as partly caused by the government's failure to properly convey key messages during the explanation of its stance on the recent working hours reform. There is also a judgment that the government failed to secure an advantage in policy promotion strategies during the announcement of solutions to forced labor issues and the outcomes of the Korea-Japan summit.


Earlier, on the 21st, President Yoon himself emphasized the importance of 'policy marketing' at a cabinet meeting. After ordering policies that the public can feel, President Yoon told the cabinet members responsible for policy marketing, "Policies unknown to the public are not policies," and urged them, "Do not fear criticism; once a proper final plan is made, even those who criticized will return."


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