Park Honggeun: "Additional Real Estate Supply Measures Needed"

"It is true that the October 15 measures were stronger than expected"
"Caution is needed in trying to control housing prices through taxation"
"Possibility that the fair market value ratio for comprehensive and property taxes may be raised"

Park Honggeun, a four-term lawmaker who previously served as floor leader of the Democratic Party of Korea, appeared on Asia Economy's "So Jongseop's Current Affairs Show" on the 17th. Regarding the October 15 real estate measures, he stated, "More concrete and detailed supply measures need to be introduced," adding, "I understand that the government and the party are planning to prepare them."

Park said, "Since the real estate market has not stabilized and housing prices have continued to surge, the government was inevitably compelled to introduce these policies." He admitted, "It is true that the measures were much stronger than expected. As a result, there are various concerns among citizens, including market participants and genuine homebuyers." However, he also assessed, "While it is true that these measures have become a burden for those who were planning to buy a home, if supply becomes easier and housing prices stabilize in the future, they will have opportunities."

On the 17th, Park Honggeun, a member of the Democratic Party of Korea, appeared on "So Jongseop's Current Affairs Show" and was interviewed by political specialist So Jongseop. Photo by Heo Younghan

Park continued, "Nevertheless, there are lingering concerns about whether supply will actually be secured in the future. It is also true that new barriers have arisen for those who intended to purchase a home. How to address these issues remains a challenge."

Regarding real estate-related taxation, he said, "During the Moon Jae-in administration, various proposals were made, but a reflective assessment is needed on the fact that they did not function properly or failed to produce the intended effects. Therefore, I fundamentally believe that a very cautious and sophisticated approach is required when it comes to trying to control housing prices through taxation." He added, "The government will likely present a proposal, but there has not yet been any consultation with the party."

He also predicted, "Currently, the fair market value ratio, which serves as the basis for imposing comprehensive real estate taxes and property taxes, has been significantly lowered. The government is likely to actively consider how to narrow this gap." This suggests the possibility that the fair market value ratio, which was reduced from 80% to 60% during the Yoon Suk-yeol administration, may be raised again.