Despite Opposition Backlash... Ruling Party Pushes Ahead with Real Estate Tax Law in National Assembly

Kim Tae-nyeon, floor leader of the Democratic Party of Korea, is attending the floor strategy meeting held at the National Assembly on the 4th and delivering opening remarks. Photo by Yoon Dong-joo

[Asia Economy Reporter Wondara] The Democratic Party of Korea is expected to unilaterally pass the 'real estate tax laws,' including amendments to the Comprehensive Real Estate Tax Act, Income Tax Act, and Corporate Tax Act, at the plenary session on the 4th. Following the ruling party with 176 seats leading the passage of the 'Lease 3 Acts' in the National Assembly on the 30th of last month, passing the real estate tax increase bill on this day will mark the finalization of the ruling party's real estate-related legislation.

Kim Tae-nyeon, the floor leader of the Democratic Party, said at the party strategy meeting held at the National Assembly on the morning of the 4th, "We plan to pass real estate bills that will expand national housing stability at today's plenary session." He emphasized, "The goal of the bills to be passed today is to eradicate speculation and protect non-homeowner actual demanders to stabilize the real estate market."

The real estate tax laws to be brought to the plenary session on this day will be approved just seven days after being submitted to the standing committee based on the Comprehensive Real Estate Tax Act on the 28th. The previously passed Lease 3 Acts were also criticized by the opposition party as hasty legislation that bypassed the subcommittee. Compared to the Lease 3 Acts, which mainly contained procedural matters such as the right to request contract renewal, the real estate tax laws include direct taxation content. They include raising the comprehensive real estate tax rate from the current maximum of 3.2% to 6%, and increasing the highest capital gains tax rate from the current 62% to 72%. The Real Estate Transaction Reporting Act, which had only applied to real estate sales contracts, will also be expanded to apply to lease contracts.

The United Future Party is opposing, saying, "Bills that infringe on the people's property rights are being hastily passed." The United Future Party did not participate in the vote and left the plenary session on the 30th of last month, and also did not participate in the vote at the full meeting of the Judiciary Committee held the day before to review the real estate tax laws. Joo Ho-young, floor leader of the United Future Party, said at a party meeting held at the National Assembly on the morning of the day, "Despite the bill causing serious infringement on the people's property rights, it is being pushed through unilaterally without proper procedures or discussion," and added, "We will decide what stance to take at today's plenary session through a closed discussion."

Meanwhile, if the real estate tax laws pass at the plenary session on this day, the real estate-related legislation that the Democratic Party has been pushing for the July National Assembly will be concluded for the time being. However, concerns about criticism of 'ruling party dominance' are also being sensed within the Democratic Party. A member of the Land, Infrastructure and Transport Committee from the Democratic Party conveyed the atmosphere, saying, "Although I agreed to the forced passage because if the follow-up legislation on real estate measures is not processed this time, it may only be possible in November, there is concern about the bill being processed too hastily."

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