Comprehensive Real Estate Tax '900 Million → 1.1 Billion Won' Passed by the Legislation and Judiciary Committee... Scheduled for Plenary Session on the 25th

[Image source=Yonhap News]

[Asia Economy Reporter Hyunju Lee] The comprehensive real estate tax threshold for first-generation single-homeowners will be eased from a publicly announced price of 900 million KRW to 1.1 billion KRW.

The National Assembly's Planning and Finance Committee held a plenary session on the afternoon of the 19th and approved the amendment to the Comprehensive Real Estate Tax Act reflecting this change.

The bill includes raising the additional deduction amount for single-homeowners from 300 million KRW to 500 million KRW. Adding the basic deduction amount of 600 million KRW, the taxable threshold becomes 1.1 billion KRW. Meanwhile, the ruling Democratic Party's proposal for the 'top 2%' publicly announced price threshold was discarded after going through the subcommittee.

Although the bill passed, there was opposition until the last moment from the Justice Party, the Basic Income Party, and some Democratic Party members. Justice Party lawmaker Jang Hye-young criticized, "This amendment is ultimately a bill that could trigger instability throughout the Seoul metropolitan area," calling it a "clear deterioration." Basic Income Party lawmaker Yong Hye-in also pointed out, "Has the government given up on controlling housing prices? It cannot avoid criticism for its erratic zigzag approach."

There was also backlash within the ruling party. Democratic Party lawmaker Kim Kyung-hyup raised his voice, saying, "This is an attempt to ease the comprehensive real estate tax just to gain a few more votes, reducing it to a mediocre wealth tax," and added, "If former President Roh Moo-hyun, who introduced the comprehensive real estate tax, knew this, he would be deeply saddened."

The amendment passed with 16 votes in favor, 3 against, and 2 abstentions out of 21 members present. The agenda is expected to be submitted to the National Assembly plenary session on the 25th.

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