The Democratic Party Unable to Conclude on Comprehensive Real Estate Tax and Capital Gains Tax... Announcement After Public Deliberation in June

[Asia Economy Reporter Oh Ju-yeon] The Democratic Party of Korea confirmed as party policy on the 27th a property tax relief plan that reduces the property tax rate by 0.05 percentage points for houses with official land prices between 600 million and 900 million KRW, but ultimately failed to reach a conclusion on the sharply divided issues of comprehensive real estate tax and capital gains tax.

Earlier, the Democratic Party's Special Committee on Real Estate proposed raising the exemption threshold for comprehensive real estate tax and capital gains tax from 900 million KRW to 1.2 billion KRW and limiting the taxable subjects to the "top 2%".

On that day, the Democratic Party's special committee did not reach a conclusion on capital gains tax and comprehensive real estate tax following discussions at the policy members' meeting. The committee's proposal was to raise the current capital gains tax exemption threshold for single-homeowners from 900 million KRW to 1.2 billion KRW. The committee emphasized easing capital gains tax, stating that "capital gains tax, which is levied based on actual transaction prices, needs to be raised from the current exemption threshold of 900 million KRW set in 2008."

However, since opinions were evenly divided at the general meeting, no conclusion was reached. It was decided to either maintain the current system or prepare alternatives centered on the committee's proposal through a public hearing and public discussion process in June, followed by consultations with the government and experts.

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