The National Assembly Real Estate Special Committee: "If No Conclusion on Eased Comprehensive Real Estate Tax and Capital Gains Tax by June, Current System Will Be Maintained"

No Conclusion Reached on Metropolitan Area Greenbelt Release... TF Discussion Needed

Kim Jin-pyo, Chairman of the Real Estate Special Committee of the Democratic Party of Korea, is giving a briefing related to the real estate policy members' meeting at the National Assembly Communication Office on the 27th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Jeon Jinyoung] The Democratic Party of Korea announced on the 27th that if no conclusion is reached by June regarding the comprehensive real estate tax (종부세) and capital gains tax improvement measures related to real estate policies, the current system will be maintained.

Kim Jinpyo, a member of the Real Estate Special Committee, said to reporters after a policy caucus briefing on the same day, “A conclusion must be reached and legislation enacted by June in order to impose the 종부세 tax in November this year.”

Kim stated, “If a conclusion is reached by June this year, the legislation will proceed as is; otherwise, the current system must be maintained.”

There are still disagreements within the party regarding the easing measures for 종부세 and capital gains tax. The party’s position also differs from the government’s. The Special Committee proposed taxing only the top 2% of properties by publicly announced price, regardless of the type of real estate such as commercial buildings or apartments. However, the government’s stance is to maintain the basic framework of 종부세 as it is and to implement partial relief measures complementarily, such as introducing a deferred payment system for 종부세.

Regarding capital gains tax, the Special Committee decided to raise the non-taxable threshold for single-homeowners from the current 900 million KRW to 1.2 billion KRW. To address the issue of high capital gains, they proposed applying the long-term holding special deduction cap of 80% differently depending on the size of the capital gains. However, this proposal has also faced criticism both inside and outside the party as a “complete criticism of the existing capital gains tax.”

The Democratic Party has also failed to reach a conclusion on the issue of ‘Greenbelt release in the metropolitan area’ related to supply. Kim said, “The Greenbelt issue requires close coordination between the party’s task force (TF) and the government TF,” adding, “Since the Seoul Mayor and Gyeonggi Province Governor must also agree, the TF will handle the matter.”

Kim added, “The Special Committee’s proposal is a plan to completely reform the current tax system. Since discussions with the government are necessary, we will hold public hearings and gather public opinion, then consult with the government to finalize the plan by June.”

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