Lee, Adjusts Pace of Capital Gains Tax Relief for Multi-Homeowners

Holding a party meeting and following internal opinion collection procedures
Seemed conscious as opposing views within the party were expressed

[Asia Economy Reporters Oh Ju-yeon and Gu Chae-eun] The Democratic Party of Korea agreed on the 14th to hold a policy meeting to gather opinions within the party regarding the ‘one-year deferral plan for the capital gains tax surcharge on multi-homeowners’ proposed by presidential candidate Lee Jae-myung. Although there were plans to start discussions immediately just the day before, the party has decided to slow down after strong opposition was expressed within the party.

[Image source=Yonhap News]

Park Chan-dae, chief spokesperson of the Democratic Party’s presidential campaign committee, told this outlet, "We will hold a policy meeting to collect and gather opinions from party lawmakers regarding the deferral of the capital gains tax surcharge." The proposal, which candidate Lee put forward in consideration of ‘real estate public sentiment,’ sparked controversy as it contradicts the policy direction that the Moon Jae-in administration and the party have maintained, leading to opposition voices within the party.

In fact, Yoon Ho-jung, the floor leader, said on the radio that day, "The capital gains tax surcharge on multi-homeowners was deferred until the end of May last year, but there were also review opinions that ‘it was not very effective’," adding, "Discussions are ongoing within the party, but opinions are divided." He also drew a line by saying, "We are reviewing whether to introduce it based on the candidate’s words, but no policy has been decided yet, and this is before party-government consultations," indicating that the party will not immediately implement the candidate’s proposal. Kang Byung-won, a Supreme Council member of the Democratic Party, also expressed skepticism about its effectiveness that day, calling it "an act that undermines policy trust."

On the other hand, Yoon Hu-deok, head of the campaign committee’s policy headquarters, supported the candidate’s idea. Regarding the criticism within the party that "it will have no effect," he emphasized, "A year ago, real estate prices were sharply rising, but now there are downward forecasts and interest rates have been raised twice," stressing that "the policy environment has changed." The Democratic Party plans to finalize the party’s stance on this issue at the policy meeting, the schedule for which has not yet been set.

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