Song Young-gil: "Top 2% Property Tax Proposal Is Not a Tax Cut for the Rich... Taxation Will Increase"

Song Young-gil, leader of the Democratic Party of Korea, is attending the Special Committee on Real Estate - Gyeonggi and Incheon Basic Local Governments Policy Issues Meeting at the National Assembly on the 1st, delivering a greeting./Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Jeon Jin-young] Song Young-gil, leader of the Democratic Party of Korea, said on the 1st regarding the comprehensive real estate tax proposal targeting the top 2% under discussion within the party, "There is controversy in some media about tax cuts for real estate wealthy, but if you fall within the top 2%, the tax burden will actually increase."

On the afternoon of the same day, at a policy issue meeting with the Real Estate Special Committee and basic local government heads from Gyeonggi and Incheon held at the National Assembly Members' Office Building, Song said, "If the comprehensive real estate tax threshold is raised from 900 million won to 1.2 billion won, tax benefits will be given even to those owning property worth over 2 billion won. However, if you are in the top 2%, the actual tax burden increases."

He added, "In the case of the comprehensive real estate tax, the combined 600 million won standard for households owning two or more houses is maintained," and "the official land price has risen significantly." He continued, "Regarding capital gains tax, for owners of two houses who sell within one year, the rate has increased to 45-65%, and for those owning three houses, up to 75%. The exemptions for comprehensive real estate tax aggregation and capital gains tax for rental housing businesses have also been phased out," he explained.

He emphasized, "I would like to reiterate that both the adjusted capital gains tax and comprehensive real estate tax this time target single-household owners."

Earlier, the Special Committee decided on the 27th of last month to impose the comprehensive real estate tax on the top 2% of official land prices and began consultations with the government. This sparked controversy in some quarters over 'tax cuts for the wealthy.'

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