Hong Nam-ki: "Lease Reporting Information Will Not Be Used for Taxation Purposes"

Real Estate Market Inspection Meeting of Relevant Ministers

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is speaking while presiding over the "23rd Real Estate Market Inspection Meeting of Related Ministers" held at the Government Seoul Office on the 3rd, attended by No Hyung-wook, Minister of Land, Infrastructure and Transport, and others.
[Photo by Yonhap News]

[Sejong=Asia Economy Reporter Son Seon-hee] Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Strategy and Finance, said on the 3rd, "The accumulated lease transaction information will not be used as tax information contrary to the purpose of the system." This statement came as the Lease Protection Act, which requires reporting of jeonse and monthly rent transactions starting early this month, has raised concerns in the market about increased tax burdens and rent pass-through, prompting efforts to calm the market.

On the morning of the same day, Hong presided over a meeting of related ministers to review the real estate market at the Government Complex Seoul and said, "The lease reporting system is by no means a measure to increase the burden on landlords." He added, "It is intended to enhance transparency in the lease market and support tenants' transaction convenience and rational decision-making through the accumulation of lease transaction information in a database (DB) and disclosure of information," emphasizing this point again.

The Lease Protection Act mandates reporting for lease contracts exceeding a deposit of 60 million won or monthly rent of 300,000 won. Hong stated, "To better protect tenants' rights, a fixed date is automatically assigned upon lease reporting," and added, "We will closely monitor and manage the impact of the reporting system on the lease market by focusing on the trends of lease reporting with related agencies over the next three months."

At the meeting, in addition to the lease reporting system, the overall real estate measures including the progress of housing supply such as the 2·4 Plan were reviewed. Hong said, "Preparations for the pre-sale of this year's quota (30,000 units) starting in July for the 3rd generation new towns are in the final stages," and added, "We will actively consider adding 2,000 more pre-sale units within this year to reflect high expectations."

Regarding the reduction of property tax rates, which has been discussed mainly by the ruling party since the April 7 by-elections, he said, "We will ensure that the Local Tax Act amendment bill passes the National Assembly in June and make thorough preparations so that the property tax imposition process in July proceeds without any issues." On the comprehensive real estate tax and capital gains tax, which have not yet been finalized, he added, "We will promptly reach a conclusion between the ruling party and the government."

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