Song Young-gil: "Using Taxes as Punitive Measures Causes Side Effects... Capital Gains Tax and Property Tax Should Be Adjusted"

[Image source=Yonhap News]

[Asia Economy Reporter Jeon Jin-young] Song Young-gil, a member of the Democratic Party running for party leader, stated on the 25th that "using taxes as a punitive measure can cause other side effects," and argued for the need to adjust capital gains tax and property tax.

In an interview with MBN's 'Sisa Special' on the same day, Song said, "Comprehensive Real Estate Holding Tax (Jongbu Tax) or property tax is levied on unrealized gains, which places a heavy burden on people who own houses but have no cash income."

He mentioned the necessity of adjusting capital gains tax and property tax, saying, "To solve this problem, I think the taxation period on unrealized gains can be deferred and the timing adjusted through the liquidity of real estate."

Song emphasized, "The basic principle of tax policy is to increase property tax and reduce transaction tax to revitalize the market. Capital gains tax is an intermediate form between transaction tax and property tax. However, raising both capital gains tax and property tax has led to a situation where there is no way out, causing controversy. I believe these aspects need to be properly adjusted."

He also added, "If a pathway is not created for genuine buyers to own homes, all the cash-rich people will scoop them up. The LTV (Loan-to-Value ratio) should be eased only for genuine buyers purchasing their first home in their lifetime."

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