<기사제목>Deputy Minister of Land: "If Officially Announced Prices Rise Significantly Next Year, Tax Measures Will Be Prepared"

"How to Reduce Tax Burden: A Matter of Consideration"
Confidence in Urban Public Housing Complex Development

Yoon Sung-won, the 1st Vice Minister of the Ministry of Land, Infrastructure and Transport, is briefing on the progress of the 3080+ measures, the first weekly housing supply including the first urban project candidate sites, together with district mayors of the relevant areas on the afternoon of the 31st of last month at the Government Sejong Complex in Sejong City.
[Photo by Yonhap News]

[Asia Economy Reporter Moon Jiwon] Yoon Sung-won, First Vice Minister of the Ministry of Land, Infrastructure and Transport, responded to criticism that the increase in official prices of apartment complexes this year has excessively raised the tax burden on the public by saying, "If official prices rise significantly again next year, we will prepare tax compensation measures."

On the 1st, Vice Minister Yoon appeared on CBS Radio's 'Kim Hyun-jung's News Show' and answered questions related to the increase in official prices of apartment complexes in this way.

He said, "Apartments with official prices below 600 million won account for 92% of the total, and these people do not have a significant tax burden," adding, "Next year, we need to see how many houses exceed 600 million won in official price and then consider how to reduce the tax burden."

Earlier, the government improved the system to reduce property tax for single-home owners of houses with official prices below 600 million won, amid growing concerns that the sharp rise in official prices could increase property tax burdens on low-income citizens.

Vice Minister Yoon explained, "There are opinions that people should bear this level of tax as house prices have risen, and there are complaints that taxes have increased too much even though they own only one house," adding, "Stabilizing house prices would be the best solution, but if prices rise again, tax-related compensation measures should be in place."

Regarding the urban public housing complex development project announced the day before, Vice Minister Yoon expressed confidence, saying, "There will be no major problems in obtaining residents' consent."

He said, "The floor area ratio and number of floors will be increased, resulting in a 40% increase in housing supply compared to the current level, and accordingly, landowners' expected returns will rise by 30 percentage points," adding, "Since the project is carried out by the public sector, measures for tenants and small businesses will also be prepared."

In response to concerns that preference for public development may decline as pledges to revitalize private reconstruction and redevelopment have emerged during the recent Seoul mayoral by-election, he explained, "This project entirely depends on residents' choice. If they prefer private development, they can choose comfortably," but added, "Because it has a certain degree of public nature, it will help maintain the local community."

Regarding concerns that the 2.4 measures might be disrupted if the Seoul mayor changes, he replied, "I believe that regardless of the party, the will to stabilize house prices remains unchanged," adding, "So far, there has been very good consultation with the Seoul city government, and considering past experience, we plan to proceed with the project in close cooperation with Seoul."

On the Korea Land and Housing Corporation (LH), which has been criticized for land speculation in new towns, Vice Minister Yoon said, "We are reviewing all options including dismantling." He added, "There are pros and cons to both dismantling and separation," and "We plan to maximize LH's strengths but innovate parts that have become bloated and hinder its advantages."

Vice Minister Yoon said, "The government has announced strong measures to eradicate speculation. We accept the public's harsh criticism and anger, and we will thoroughly investigate, punish, and recover all speculative acts," adding, "If LH changes its working methods and the urban public housing complex project proves effective, it will be easier to persuade residents."

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