Government "Discussing Supplementary Real Estate Policies for Genuine Buyers... Prompt Consultation"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is reviewing real estate policy issues at the Ministerial Meeting (Green Room Meeting) held at the Korea Eximbank in Yeouido, Seoul on the 29th. 2021.4.29
[Photo by Yonhap News]

[Sejong=Asia Economy Reporter Son Seon-hee] The government announced on the morning of the 29th that it held a closed-door meeting on real estate policy and discussed policy supplements targeting actual demanders such as 'non-homeowners and one-homeowners.' Although the specific discussion details were not disclosed, it is interpreted that the focus was on easing measures for actual demanders in relation to the comprehensive real estate tax, which has recently been at the center of controversy.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held a meeting of related ministers (Green Room Meeting) at the Export-Import Bank in Yeongdeungpo-gu, Seoul, on the morning of the same day. The Ministry of Economy and Finance stated that they reviewed opinions raised regarding recent real estate policies and discussed supplementary measures. The ministry explained, "Participants exchanged various opinions on policy supplements targeting actual demanders such as non-homeowners and one-homeowners within the framework of existing real estate policies," and "agreed to promptly coordinate the government’s position and consult with the National Assembly and others."

Earlier, at a press briefing on the 27th, Deputy Prime Minister Hong said regarding the easing of the comprehensive real estate tax, "We expect to coordinate the government’s position through inter-ministerial consultations within this week." This means that the government intends to make a comprehensive judgment by hearing the positions of each ministry, including the Ministry of Economy and Finance, which oversees the comprehensive real estate tax, the Ministry of the Interior and Safety responsible for property tax, and the Ministry of Land, Infrastructure and Transport, which manages official land prices.

Although the government did not separately disclose the results of the Green Room Meeting held that day, emphasizing 'policy supplements for actual demanders' suggests that the tax base for the comprehensive real estate tax will be raised for non-homeowners and one-homeowners to reduce their burden. However, based on this government stance, the final decision will be made through 'party-government consultations.' Since the ruling party, the Democratic Party of Korea, will elect a new leadership including the party leader this weekend, considering the appointment of the next policy committee chairperson, it is expected to take some physical time. Regarding this, Deputy Prime Minister Hong expressed the position to proceed with party-government consultations as soon as possible.

The meeting chaired by Deputy Prime Minister Hong included Eun Sung-soo, Chairman of the Financial Services Commission; Lee Jae-young, Vice Minister of the Ministry of the Interior and Safety; Yoon Sung-won, First Vice Minister of the Ministry of Land, Infrastructure and Transport; and Ahn Il-hwan, Senior Secretary for Economic Affairs at the Blue House.

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