Choo Mi-ae Announces "Land Reform" as First Presidential Pledge, Promises to Push for Constitutional Amendment on Public Land Concept

Strengthening Property Holding Tax Focused on Land to Block and Recoup Unearned Income
Long-term Shift from Comprehensive Real Estate Tax to 'Gukto Boyuse'... Increased Revenue Distributed as 'Social Dividends'
Increased Corporate Tax Surcharge on Large Corporations, Raised Top Rates for Inheritance and Gift Taxes

[Asia Economy Reporter Oh Ju-yeon] Former Minister of Justice and Democratic Party presidential candidate Chu Mi-ae has introduced 'land rent reform' as her first presidential pledge. Former Minister Chu stated, "We will strive to use the taxation normalization of massive real estate unearned income and rational fair taxation for public rental housing, alleviating polarization and inequality."

On the 23rd, Former Minister Chu held a press conference at the National Assembly Communication Office and said, "Through land rent reform, we will create a world where 'people are valued more than land.'"

Former Minister Chu presented real estate reform as her first presidential pledge, saying, "A society where the unearned income economic system is entrenched loses vitality and social conflicts intensify, inevitably leading to decline."

Former Minister of Justice and Democratic Party presidential candidate Choo Mi-ae announced her presidential campaign pledges on the 23rd at the National Assembly Communication Office. YouTube screen capture.

To this end, she emphasized the promotion of a 'constitutional amendment on the public concept of land.'

She explained, "Real estate policies should not be implemented solely for the purpose of stabilizing prices," adding, "Without reforming the unearned income economic system, which is the root cause of the problem, the recurring issue of skyrocketing real estate prices cannot be resolved." She further stated, "My real estate policy philosophy is a 'market-friendly public concept of land.' Upon my inauguration as president, I will follow President Moon Jae-in's will and initiate constitutional amendment work to concretize the public concept of land."

Former Minister Chu also said she would strengthen the 'real estate holding tax' focusing on land.

She said, "Economic phenomena such as expensive land prices, periodic speculative booms, and inequality in real estate ownership fundamentally arise from 'real estate unearned income,'" and added, "The most effective policy to block and recover real estate unearned income is to strengthen the real estate holding tax centered on land."

Former Minister Chu emphasized, "The effective tax rate, meaning 'holding tax amount/real estate value,' was only 0.16% in 2018. Compared to the United States, it is about one-sixth to one-seventh of that level," and said, "Despite the obvious truth that strengthening the real estate holding tax is necessary to eradicate real estate speculation, governments before the Participatory Government feared tax resistance and did not dare to pursue this policy. I intend to carry on the great will of President Roh Moo-hyun, who sought to eradicate real estate unearned income and create a 'world where people live,' by completing the policy of strengthening the holding tax."

She also promised to enrich the lives of the majority of ordinary citizens and the middle class through rational fair taxation.

[Image source=Yonhap News]

Former Minister Chu said, "Holding taxes on owner-occupied houses or business-use land below a certain value will be maintained at the current level, and the government's ongoing plan to realize official property prices will be pursued to resolve unfairness by real estate price range, type, and region, with the current realization rate target of 90% being lowered."

She continued, "I will present the long-term goal of strengthening the real estate holding tax and prepare a roadmap to achieve the goal, expanding national consensus," adding, "The target effective tax rate I propose is 0.5%."

Former Minister Chu said, "The policy to strengthen the holding tax will mainly target those who hold excessive houses and own unnecessary land and buildings," and expressed, "It is appropriate to strengthen the holding tax on land and building owners who receive tax benefits through differential taxation by use."

In the long term, the comprehensive real estate tax will be converted into a national land holding tax.

Former Minister Chu said, "It will be imposed on all landowners, and the net increase in tax revenue will be equally distributed to all citizens as a social dividend," adding, "The social dividend paid by collecting the national land holding tax will form the foundation of universal welfare in the 'double welfare state' I propose."

However, she drew a line, saying it is different from a 'basic income-type national land holding tax.' She explained, "It is not simply the state giving cash to all citizens without special reasons," and added, "It is paying dividends to all citizens who have equal rights to the land as sovereigns of the Republic of Korea, in accordance with those rights. It should be likened to a corporation paying dividends to shareholders according to the number of shares." She also mentioned, "There is already an estimation that if the system is well designed and implemented, more than 90% of households will be net beneficiaries."

In addition, Former Minister Chu said she would push for increased corporate tax surcharges on conglomerates and large corporations, progressive income tax, higher top rates on inheritance and gift taxes, and the introduction of carbon tax and big data tax.

She also explained that holding taxes will be raised while transaction taxes will be lowered, and a new highest bracket (tax base over 2 billion KRW) will be established for capital gains tax with a marginal rate of 60%. She said, "This will naturally solve the freezing effect problem where multi-homeowners do not put properties on the market, while significantly recovering unearned income enjoyed by excessive real estate holders."

Former Minister Chu expressed her expectation, saying, "Land rent reform can also remove the entrenched privileged system and unearned income economic system. Real estate speculation, which has periodically troubled Korean society, will subside, and inequality and polarization caused by real estate will be greatly alleviated."

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