Democratic Party's Go Young-jin: "Multi-homeowners Won't Endure... Supply Expansion Needed, But Can't Touch Reconstruction Now"

[Asia Economy Reporter Park Cheol-eung] Ko Yong-jin, the ruling party whip of the National Assembly's Planning and Finance Committee and a member of the Democratic Party of Korea, stated that it will be difficult for multi-homeowners to continue holding out under the government's real estate measures, and that additional supply expansion plans will also be introduced. However, he mentioned that easing reconstruction regulations is currently not being considered due to the significant market instability it could cause.

On the 13th, Ko appeared on MBC Radio's "Kim Jong-bae's Focus" and said, "The ruling party and government consulted and the government announced the measures last Friday. I received them and am legislating accordingly," adding, "This bill was created with the policy goal of raising tax rates significantly on multi-homeowners who own several properties besides their primary residence, urging them to sell or put them on the market."

He also said, "For owners of apartments with a market price of 2.5 billion won, the tax burden is expected to increase by about 60 million won compared to before, resulting in an annual tax burden of around 100 million won," and added, "Then, will these costs be passed on to the jeonse tenants? Or can they endure by converting to monthly rent? They might hold out for a while, but I think it will be difficult in the long term. That is why there is a grace period for the capital gains tax surcharge until June 1 of next year. The government and the party's goal is for them to sell by then."

Regarding supply expansion, he said, "It is not very easy. We need to assess how much housing supply is actually lacking, look at the confirmed quantities for the 3rd New Towns, their move-ins and sales, and then discuss with local governments like Seoul City," but added, "Increasing supply is definitely the direction."

On the plan to lift the Greenbelt, he mentioned, "There are some internal disagreements. The Seoul Mayor has consistently opposed it, and from the perspective of maintaining a pleasant city environment, deciding how to preserve or lift these areas is not an easy matter." Nevertheless, when asked if it is on the discussion table, he replied, "Yes."

Ko said, "There are many demands regarding reconstruction, but if handled poorly, it could stimulate speculative demand and cause serious confusion in the real estate market," adding, "If mishandled, it could become uncontrollable."

He continued, "Touching reconstruction now seems risky, and appropriate measures should be developed at the right time, but not now, according to the ruling party and government's judgment." He explained that while housing supply plans will be discussed, reconstruction revitalization is a lower priority.

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