People Power Party to Lower Official Property Prices Next Year and Integrate Comprehensive Real Estate Tax and Property Tax

"2022 Housing Official Price Reduced to 2020 Level"

Won Hee-ryong, Head of Policy Headquarters of the People Power Party's Presidential Election Committee, attended the 20th Presidential Election Veterans Policy Proposal and Keynote Lecture titled "Talking about Veterans" held at the National Assembly on the 15th and delivered a congratulatory speech. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Hyunju Lee] On the 23rd, the People Power Party announced that it will lower next year's official housing prices to last year's level. They are also pursuing a plan to integrate the comprehensive real estate tax and property tax.

Won Hee-ryong, head of the policy headquarters of the People Power Party's Central Election Countermeasures Committee, held a press conference at the National Assembly on the same day to announce real estate tax-related pledges. Head Won stated, "No country raises official prices by as much as 19% in one year," and added, "We will revert the 2022 official prices to the 2020 level." This means slowing down the government's policy to raise official prices, which serve as the basis for real estate taxes such as property tax and comprehensive real estate tax, as well as welfare support standards like basic pension and health insurance premiums, to 90% of market prices by 2030. Lee Jae-myung, the Democratic Party candidate, has also expressed a position to fully review the official price system.

Regarding the comprehensive real estate tax, the proposal was more radical than candidate Lee's "pinpoint relief." The plan is to integrate the comprehensive real estate tax and property tax, although specific measures were not disclosed that day. However, Head Won said, "Even before integration, we will implement measures to ease the tax burden." As a measure, he said that the fair market value, which is reflected in property tax calculation along with the official price, will be frozen at the current level of 95%. Next year's fair market value is expected to increase by 100%. For capital gains tax, he proposed a temporary application of the heavy tax rate on multi-homeowners for up to two years, which is longer than candidate Lee's one-year deferral.

The acquisition tax burden is a notable issue as it has not yet been discussed in the political sphere by candidate Lee. The main points include unifying the current acquisition tax rate of 1-3% for single-homeowners or simplifying the tax rate application brackets, and easing the excessive progressive tax rates on two or more homes in regulated areas. For first-time buyers, he proposed either exempting acquisition tax or applying a single tax rate of 1%. Head Won said, "We will launch a task force to normalize real estate taxation as soon as the government is inaugurated," and added, "We plan to announce comprehensive real estate measures covering four areas: taxation, supply, finance, and regulation."

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