청 "Be Cautious in Discussing Capital Gains Tax for Multi-Homeowners... No Supplementary Budget Review at Present"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Lee Ho-seung, Chief of Policy at the Blue House, stated on the 16th regarding the 'postponement of capital gains tax surcharges for multi-homeowners' proposed by Lee Jae-myung, the Democratic Party presidential candidate, that "it has the aspect of stimulating real estate demand" and emphasized the need for cautious discussion. Regarding the ruling party's discussion on a 'support first, settle later' plan for small business owners through supplementary budgets, he said, "At present, we are not considering supplementary budgets."

On the morning of the 16th, Lee appeared on MBC Radio's 'Kim Jong-bae's Focus' and said, "Since the housing market situation is at a sensitive turning point, the government and the Blue House believe that discussions on fundamentals such as the 'capital gains tax for multi-homeowners' should be cautious, and efforts should focus on market stabilization."

The Blue House views the real estate market as undergoing a downward stabilization trend. Lee, who had stated in an interview at the end of last month that "the real estate market is in a downward stabilization phase," said, "Compared to then, it seems we have entered a further stage of downward stabilization now," adding, "There is no longer energy in the market to prop up prices."

In this situation, considering postponing the capital gains tax surcharge for multi-homeowners could send the wrong signal to the market. Lee said, "(Postponing the capital gains tax surcharge) is a situation possible only after the market has firmly stabilized," and added, "If such discussions occur, listings will not come out and will be withheld, which stimulates demand."

However, regarding reports that the Blue House conveyed opposition to postponing the capital gains tax surcharge to the Democratic Party through Lee Cheol-hee, Senior Secretary for Political Affairs, Lee refrained from confirming, saying, "We did not provide materials, so this needs to be verified." He also drew a line against concerns about renewed conflict between the Blue House and the ruling party, stating, "There is no difference in the view that the government and the ruling party consider housing market stabilization the top priority."

Regarding the ruling party's proposal of a 'support first, settle later' plan based on supplementary budgets for small business owners' loss compensation, the Blue House said, "There is no disagreement on the need for prompt payment to small business owners," but added, "At present, we are not considering supplementary budgets."

Lee emphasized, "We must first secure funds from the loss compensation budget (2.2 trillion won), and if insufficient, there are temporary contingency funds and means from funds," adding, "Regarding supplementary budgets, with claims of a massive scale reaching 100 trillion won between the two major candidates and their camps ahead of the presidential election, the best approach now is to find the fastest and most realistic method to alleviate the difficulties of small business owners."

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