Noh Hyung-wook: "Considering Market Impact, Reviewing Loan Restrictions and Comprehensive Real Estate Tax Relief for Non-Homeowners"

Revealed in National Assembly Hearing Response Materials
Comprehensive Review Needed on Loan Regulation Easing and Market Impact
Cautious Approach to Reducing Comprehensive Real Estate Tax and Raising Criteria for Single-Homeowners

[Image source=Yonhap News]

[Asia Economy Reporter Jo Gang-wook] Noh Hyung-wook, nominee for Minister of Land, Infrastructure and Transport (photo), expressed the position that the easing measures for loan regulations such as the loan-to-value ratio (LTV) for the non-homeowners should be decided after carefully reviewing the impact on the housing market and household loans.

In the response materials submitted to the National Assembly on the 2nd, regarding the Democratic Party lawmaker Park Sang-hyuk's proposal to ease loan regulations such as LTV, nominee Noh stated, "Whether to ease loan regulations needs to be decided by comprehensively reviewing the impact on the housing market, trends in household loans, and the necessity of easing regulations."

Regarding concerns that easing loan regulations could cause damage if housing prices fall in the future, he said, "To decide whether to ease loan regulations, it is essential to consider the borrower's repayment ability when the housing market declines in the future, in order to maintain macroprudential stability and ensure sound loans for individual borrowers."

He showed a cautious attitude toward questions related to the comprehensive real estate tax.

Regarding the easing of the comprehensive real estate tax for single-homeowners, he said, "Recently, a special case has been introduced to reduce the property tax rate for houses with a publicly announced price of 600 million won or less, so most single-household single-homeowners have a reduced tax burden," adding, "I think it is necessary to comprehensively consider market impact and tax fairness as well."

Additionally, on the proposal to raise the comprehensive real estate tax threshold from the current publicly announced price of 900 million won to 1.2 billion won, nominee Noh responded, "Since single-household single-homeowners receive up to 80% tax credit benefits through elderly deductions and long-term holding deductions, it is necessary to carefully review any additional increase in the valuation standard."

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