Justice Party Urges Ruling Party to Fully Withdraw Real Estate Policy

[Asia Economy Reporter Oh Ju-yeon] The Justice Party evaluated the real estate policy announced by the Democratic Party of Korea on the 27th as "a self-confession that it is a party representing real estate vested interests" and urged its complete withdrawal.

Lee Dong-young, the chief spokesperson, said in a commentary on the day, "After hesitating and retreating, they finally decided to follow the People Power Party and start a full-scale reversal of real estate policies," criticizing, "It is not a Real Estate Special Committee but a Real Estate Privilege Committee."

The Democratic Party's Real Estate Special Committee confirmed the party's stance to raise the property tax exemption threshold from the existing 600 million won to 900 million won. They proposed imposing the comprehensive real estate holding tax only on the top 2%. They also decided to expand the preferential loan-to-value (LTV) ratio from the current 10 percentage points up to a maximum of 20 percentage points.

Following the announcement of such real estate policies, the Justice Party immediately rebutted. The chief spokesperson said, "As of this year, only 3.7% of the entire population is subject to the comprehensive real estate holding tax on apartment complexes," adding, "If the taxable target is raised to the top 2%, it means excluding even 1.7%."

He continued, "Although 92.1% of those subject to property tax actually paid less tax than last year, raising the exemption threshold to a publicly announced land price of 900 million won (market price 1.2 billion won) undermines the fundamental principles of tax fairness and real estate market stability," he pointed out.

He said, "Support is already provided through systems such as the tax burden ceiling system and up to 80% tax credit on comprehensive real estate holding tax for elderly homeowners with no income, yet misleading people with the 'tax bomb' rhetoric is nothing but condoning the soaring housing prices rather than curbing them," and criticized, "The plan to ease loan regulations is ultimately like handing a time bomb saying 'borrow money and buy a house' because they cannot control housing prices."

Lee, the chief spokesperson, said, "In Seoul, the publicly announced land price of a 700 million won apartment increased by 200 million won compared to last year, but the increase in holding tax is only 370,000 won annually, whereas the monthly rent paid by low-income people without homes is about 500,000 won," and criticized, "The Democratic Party of Korea, which focuses only on the tax concerns of real estate vested interests who own houses rather than the housing worries of the homeless low-income people, has now revealed its true identity as to whom it represents and for whom it will make laws in the future."

He added, "If the Democratic Party of Korea at least wants to use the words 'livelihood' and 'low-income people,' we strongly urge them to completely withdraw the real estate vested interest policies announced today."

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