Sim Sang-jung: "No matter how many houses, unearned income must be taxed according to tax principles"

The Public Rental Housing Double Solidarity and Justice Party lawmaker Sim Sang-jung held a press conference in front of the National Assembly main building on the 8th, condemning the 'February 4 Real Estate Measures' and urging solutions to the housing problems of ordinary people and the expansion of public rental housing. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Park Cheol-eung] Sim Sang-jung, a lawmaker from the Justice Party, stated that regardless of the number of houses owned, unearned income should be taxed according to the principle of tax justice. She responded with "absurd" to Song Young-gil, a lawmaker challenging for the leadership of the Democratic Party of Korea, who advocated for allowing a loan-to-value ratio (LTV) of 90% on mortgages.

On the 27th, Sim appeared on CBS Radio's 'Kim Hyun-jung's News Show' and said, "After the by-elections, the public opinion on the failure of real estate policies is being completely misread," adding, "Both ruling and opposition parties are competing to raise their voices representing the interests of wealthy real estate owners who pay comprehensive real estate tax, but there is almost no voice for the nearly half of the population who do not own homes."

She continued, "Protecting actual residents who own two houses in one household and realizing tax justice are different issues. Whether it is one house, two houses, or three houses, unearned income generated from real estate should be taxed according to the principle of tax justice," she emphasized.

Regarding Song's claim to allow an LTV of 90%, she said, "In short, it means borrowing money to buy a house. The Democratic Party of Korea was a party that heavily criticized borrowing money to buy houses during the Park Geun-hye administration. It is truly regrettable that such an absurd proposal has emerged."

She added, "Providing loans up to 90% in the financial system is predatory lending," and pointed out, "If housing prices drop even slightly, it could lead to a subprime mortgage crisis." Sim also criticized, "LTV and DTI (debt-to-income ratio) are measures to stabilize the financial market. The problem arises when these are continuously dragged into real estate policy."

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