Ihaesik: "Local Tax Law Amendment, Targeted Policy for Multi-Homeowners... Will Reduce Tax Burden for Actual Buyers"

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] Lee Haesik, a member of the Democratic Party of Korea, emphasized that the partial amendment to the Local Tax Act, which raises the highest acquisition tax rate, is a targeted policy for multi-homeowners.

On the afternoon of the 4th, during the plenary session held at the National Assembly, Lee spoke in favor of the amendment to the Local Tax Act, stating, "According to Statistics Korea, out of a total of 19.98 million households, 15.4%, or 3.08 million households, own two or more homes," and added, "This amendment to the Local Tax Act is a targeted policy aimed at multi-homeowners."

Lee also emphasized that the tax rates are not high. He explained, "An 8% acquisition tax is applied to two-homeowners in regulated areas and three-homeowners in non-regulated areas, while a 12% acquisition tax applies to those owning three or more homes in regulated areas, four or more homes in non-regulated areas, and corporate homeownership," adding, "Even Singapore, where the owner-occupancy rate reaches 92.3%, operates a system that applies a high tax rate of up to 15% for multi-homeowners."

He further stated, "The amendment also includes provisions allowing a 50% reduction in acquisition tax for first-time homebuyers who meet income criteria regardless of age, marital status, or area size," emphasizing, "This will realize the policy goal of reducing the tax burden on genuine homebuyers."

Lee criticized, "The United Future Party opposed the tax increase without sufficient discussion and did not attend the full meeting of the Administrative Safety Committee on the 28th of last month," adding, "Unfortunately, there are those who seek economic and political gains by inciting anxiety. They will never succeed."

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