With "No Confirmation on 종부세 Relief... Priority Given to Measures for 무주택 and Real Demand"

Raising Comprehensive Real Estate Tax Threshold from 900 Million to 1.2 Billion Won Discussed
Not a Priority for Discussion
Real Estate Special Committee Focuses on Non-Homeowners and Actual Demand

Jin Sun-mi, Chair of the Real Estate Special Committee of the Democratic Party of Korea, is delivering opening remarks at the 1st meeting of the Real Estate Special Committee held at the National Assembly Members' Office Building on the 27th. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Koo Chae-eun] Although Kim Jin-pyo, the chairman of the Democratic Party’s Real Estate Special Committee, mentioned the card of ‘raising the comprehensive real estate tax (종부세) threshold to 1.2 billion KRW,’ the Democratic Party’s policy stance is to ‘strengthen holding taxes (comprehensive real estate tax, property tax, etc.) and reduce transaction taxes (capital gains tax, acquisition and registration tax),’ so a wide range of related discussions are expected to pour in within the party.

On the 14th, multiple members of the Real Estate Special Committee who spoke with this outlet drew a clear line regarding the ‘raising the 종부세 threshold to 1.2 billion KRW,’ saying, “Nothing has been finalized at all.” Although Kim Jin-pyo, chairman of the Real Estate Special Committee, directly mentioned ‘raising the 종부세 standard from the current 900 million KRW to 1.2 billion KRW’ at the first Real Estate Special Committee meeting on the 12th, it is not an option being discussed as a priority.

Yoo Dong-soo, the senior policy vice chairman of the Democratic Party and a member of the Real Estate Special Committee, told this outlet, “It is just an idea presented for discussion,” adding, “We need to hear the opinions of advisory committee members within the special committee, and basically, the party’s official stance is to focus on measures for the housing non-owners and real demand, so it needs to be reviewed further.” Regarding Kim Jin-pyo’s remark about raising the 종부세 threshold to 1.2 billion KRW, Yoo said, “It is just one idea among many within the real estate special committee,” emphasizing, “It is not an option being discussed as a priority or seriously considered.” Representative Chun Jun-ho also told this outlet, “As far as I know, nothing has been decided yet about raising the 종부세 threshold to 1.2 billion KRW.” Another policy committee official said, “Since about 50% of Koreans are housing non-owners, the confirmed policy stance is to focus on easing transaction taxes rather than holding taxes,” adding, “Nothing has been decided regarding the 종부세.”

However, with not only Chairman Kim Jin-pyo but also metropolitan area district lawmakers such as Kim Byung-wook proposing the 1.2 billion KRW 종부세 threshold increase, discussions related to the Democratic Party’s real estate taxes are expected to continue. The Democratic Party’s Real Estate Special Committee declared on the 26th of last month, mindful of internal backlash and the backlash of ‘policy stance revision,’ that “there will be no tax discussions including 종부세 relief for the time being.” At that time, since the 종부세 imposition timing was somewhat flexible until November, the plan was to discuss it sufficiently.

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