Korea Housing Association Urges Reduction of Comprehensive Real Estate Tax Burden and Relaxation of LTV Regulations... Proposal to Ruling Party and Government

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[Asia Economy Reporter Moon Jiwon] The Korea Housing Association has requested the government and the National Assembly to ease regulations on the private housing market to overcome the economic crisis caused by the novel coronavirus infection (COVID-19).

On the 6th, the association announced that it submitted a 'Housing Sector Policy Task Proposal (41 items)' containing such requests to political parties, the National Assembly, the Office for Government Policy Coordination, the Ministry of Economy and Finance, and the Ministry of Land, Infrastructure and Transport.

The proposals include comprehensive real estate tax reductions for single-homeowners and easing of the loan-to-value (LTV) ratio regulations for actual homebuyers.

First, as housing sector policy tasks, the association emphasized the need for reducing the comprehensive real estate tax for single-household single-homeowners, tax reductions for multi-child families acquiring homes, maintaining the current cap on comprehensive real estate tax burden, raising the high-priced housing threshold (from the current 900 million KRW to 1.2 billion KRW), and extending the temporary exemption period for capital gains tax surcharges on multiple homeowners.

They proposed easing LTV regulations focusing on low-income and actual homebuyers and raising income eligibility criteria. Additionally, they requested that the law stipulate the immediate removal of the private land price ceiling system once the reasons for its designation are resolved, and that speculative overheated areas be classified at the eup, myeon, and dong levels.

The association also demanded resolving the monopoly issue of the Housing and Urban Guarantee Corporation (HUG) in pre-sale guarantee operations and maintaining the current mandatory ratio of rental housing in redevelopment projects to promote urban housing supply. In particular, they emphasized delaying the imposition timing of reconstruction charges for actual homebuyers from the approval date of the promotion committee to the date of the association establishment approval.

This content was produced with the assistance of AI translation services.