Lee Hoseung, Cheong Policy Chief, "Consensus on Reducing Burden for Long-term Single Homeowners"

Ruling Party and Government Discuss Easing Burden on Real Demand in Real Estate... Cautious Stance on Raising Comprehensive Real Estate Tax Threshold

[Asia Economy Reporter Ryu Jeong-min] The Blue House is preparing to reform the real estate system in a way that reduces the burden on long-term owners of a single home.

Lee Ho-seung, Chief of Policy at the Blue House, stated in an interview with MBC Radio's 'Kim Jong-bae's Focus' on the morning of the 12th, "There is a consensus that the burden on those who own a single home and have lived in their own house for a long time should be reduced."

Additionally, Lee said, "44% of all households do not own a home. Young people and newlyweds also need to acquire new homes," and added that the ruling party and government are discussing ways to ease the burden when these groups purchase new homes. Lee also mentioned that an announcement regarding the discussion will be made soon.

[Image source=Yonhap News]

Earlier, President Moon Jae-in stated during a Q&A session with the press following his 4th anniversary special speech on the 10th, "There is a need to adjust parts of the real estate policy that are causing difficulties for actual homebuyers or creating greater burdens."

Although President Moon has mentioned the need for changes in real estate policy, this is effectively the first time that specific details have been conveyed through remarks by a senior Blue House official.

When asked whether the government is considering easing loan regulations, Lee said, "We need to consider a combination of factors for those who are homeless, young people, newlyweds, or single-home owners with specific characteristics," indicating that they are contemplating measures to protect actual homebuyers.

However, Lee expressed caution regarding raising the comprehensive real estate tax threshold to 1.2 billion won. He said, "The comprehensive real estate tax part requires more careful consideration," adding, "Considerations should be made from the perspectives of demand and tax fairness."

Meanwhile, regarding the forecasted 4% economic growth rate this year, Lee said, "Not only traditional industries but also new industries such as semiconductors and bio companies are performing much better than expected."

However, Lee explained, "Since employment recovery is just beginning, the numbers need to continue increasing in May and June to be felt," adding, "While some industries and companies are clearly doing well, sectors heavily affected by COVID-19 and those with decreased incomes are still facing difficulties."

Regarding the agenda of the Korea-US summit, Lee said, "One of the main discussion topics is the Korea-US vaccine partnership," explaining, "The United States has the core technology and raw materials for vaccines, and Korea has the world's second-largest bio production capacity. Combining these two can make Korea a global hub for vaccine production."

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