People's Solidarity for Participatory Democracy & Sim Sang-jung Promote Legislation for 'Land Excess Profit Tax Act' to Eradicate Speculation

Park Jung-eun, Secretary General of the People's Solidarity for Participatory Democracy, is speaking at a press conference announcing five major tasks to eradicate real estate speculation and recover investment profits, held on the 8th at the People's Solidarity for Participatory Democracy in Jongno-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Park Cheol-eung] The People's Solidarity for Participatory Democracy (PSPD) is filing a legislative petition for the Land Excess Profit Tax Act together with Justice Party lawmaker Sim Sang-jung.

PSPD and Rep. Sim announced that they will hold a press conference on the afternoon of the 27th to petition for the enactment of the Land Excess Profit Tax Act aimed at recovering speculative profits.

In the early 1990s, the Land Excess Profit Tax was operated by surveying the prices of idle land every three years and applying a progressive tax rate on the excess increase compared to the normal land price rise to recover speculative profits. This system was based on the public concept of land, and they are proposing its revival.

PSPD explained the background, stating, "The Korea Land and Housing Corporation (LH) employees' speculation scandal reveals not only corruption and conflicts of interest among public officials but also the widespread speculative behaviors surrounding development planned areas in our society, including planned real estate, outsiders, and violations of the Farmland Act. Speculating on land, which is a public asset necessary for everyone but inevitably limited, as a means of personal asset accumulation cannot be justified by anything."

They continued, "To fundamentally block real estate speculation, a system that can recover unearned income from speculation is necessary. Given the current frequent real estate speculation, the revival of the Land Excess Profit Tax Act, which was abolished after the IMF economic crisis to stimulate the economy, is needed."

The legislative petition will be introduced by Rep. Sim. She is the chairperson of the Justice Party's Special Committee for the Dismantling of the Real Estate Speculation Republic.

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