Jang Hye-young "Reduction of Comprehensive Real Estate Tax Further Heightens Housing Instability" · Yong Hye-in "Decision to Neglect Soaring House Prices"

"23% of Lawmakers Are Real Estate Asset Owners Who Paid Comprehensive Real Estate Tax Over 5 Years"
Comprehensive Real Estate Tax Threshold Eased from 900 Million to 1.1 Billion Won, Finally Passed

Jang Hye-young and Ryu Ho-jeong, members of the Justice Party, are holding a picket protest in front of the National Assembly's Planning and Finance Committee in Yeouido, Seoul, on the 19th, opposing the amendment to the comprehensive real estate tax.
The Democratic Party of Korea and the People Power Party passed an amendment in the meeting on the same day to raise the comprehensive real estate tax threshold for single-home households from 900 million won to 1.1 billion won. 2021.8.19 [Image source=Yonhap News]

[Asia Economy Reporter Hyunju Lee] Before the National Assembly vote on the 'Partial Amendment to the Comprehensive Real Estate Tax Act (Alternative)' to raise the comprehensive real estate tax threshold for first-generation single-homeowners from 900 million KRW to 1.1 billion KRW, Jang Hye-young of the Justice Party and Yong Hye-in of the Basic Income Party held opposing debates. Both lawmakers warned that easing the comprehensive real estate tax standard could instead signal a rise in housing prices.

On the 31st, Representative Jang Hye-young said at the National Assembly plenary session, "The government and ruling party, indifferent to the anxiety and frustration of the house-less common people, have pushed through the comprehensive real estate tax amendment bill, which drastically lowers the tax that homeowners should naturally pay in proportion to the rising house prices, together with the People Power Party at last week's full meeting of the Planning and Finance Committee." She pointed out, "Easing the comprehensive real estate tax now will not help stabilize housing for the common people but will rather further intensify the ongoing housing insecurity."

Representative Jang said, "As a member of the National Assembly, a non-homeowner, and a young person who must live in the world beyond today, I earnestly appeal here," adding, "Students and workers who must move farther away from their already distant companies and schools due to rising rents following soaring house prices; young people moving from places on the ground with no sunlight to windowless semi-basements, goshiwons, or hot and cold rooftop rooms; in the midst of the despair that forces them to give up life itself rather than just a home, I will deliver a petition to block this comprehensive real estate tax amendment on behalf of countless poor common people who have never even imagined making a complaint call to a lawmaker." He became choked up and teary during his speech.

Yong Hye-in, a member of the Basic Income Party, is speaking at the Tax Subcommittee of the Planning and Finance Committee held at the National Assembly in Yeouido, Seoul on the 19th. 2021.8.19 [Photo by Yonhap News]

Representative Yong Hye-in also said, "The increased 'comprehensive real estate tax burden' due to rising real estate prices is exactly the intended effect of the comprehensive real estate tax," and criticized, "When prices rise, tax burdens increase, which then stabilizes prices again. Isn't this the goal of the comprehensive real estate tax created during the Participatory Government era by senior lawmakers?"

He continued, "Among the 300 members of the 21st National Assembly, 70, or 23%, are real estate asset owners who have paid comprehensive real estate tax in the past five years, but can you confidently say that you are doing politics for the house-less common people and those who work diligently dreaming of owning a home?" He said, "This comprehensive real estate tax amendment will send a signal to real estate speculators that 'if you hold on, you win.'" He also expressed, "It will be a decision by the National Assembly to leave the housing price surge unchecked." Instead of the amendment, he advocated changing the political landscape surrounding real estate holding taxes through the 'Basic Income Land Tax Act.'

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