Kim Eun-hye Proposes Bill to Completely Abolish Moon Administration's 'Official Property Price Realization' Policy

Current Official Property Prices Reflect Up to 90% of Market Value
Concerns Raised Over Excessive Tax Burden
Kim: "Ideological Overlay on Economy... Protect Property Rights"

An amendment bill to completely abolish the 'Real Estate Official Price Realization' plan introduced during the Moon Jae-in administration was proposed on the 7th. The bill aims to delete part of the wording in Article 26-2 of the 'Act on Official Real Estate Price Disclosure.'

Kim Eun-hye, a member of the National Assembly Land, Infrastructure and Transport Committee from the People Power Party, proposed the amendment bill containing this content on the same day. Representative Kim stated, "This amendment bill includes not only the abolition of the official price realization plan but also the establishment of a procedure to review the impact on taxes and charges, which is expected to secure the effectiveness of the official price policy to protect the property rights of the people."

Kim Eun-hye, Member of the People Power Party. Photo by Dongju Yoon doso7@

The real estate official price realization plan introduced in 2020 during the Moon Jae-in administration aimed to raise the government's official price reflection rate to 90% of the market price. This was because there was an issue that the official price did not properly reflect the market price.

However, excessive tax burdens came under scrutiny. Even when house prices did not rise, official prices increased, and when house prices rose, tax burdens surged, causing side effects. In particular, Taiwan, which was cited as an example by the Moon Jae-in administration when promoting the official price realization plan, became controversial because the government claimed that Taiwan's official price realization rate was around 90%, but in reality, it was only about 20%.

This amendment bill reflects an alternative to abolish the realization system and instead establish a committee to consider the impact of official real estate prices on taxes, charges, and equity. Representative Kim said, "As a result of overlaying ideology on the economy, the tax burden on the people increased, and the vicious cycle of soaring real estate prices was repeated," adding, "We will do our best to normalize the abnormal official price policy so that the property rights and the right to pursue happiness of the people can be firmly protected."