Democratic Party Launches 'Real Estate Reform Committee'... Introduction of Land Profit Dividend System

[Asia Economy Reporter Oh Ju-yeon] The Real Estate Reform Committee directly under Lee Jae-myung, the presidential candidate of the Democratic Party of Korea, was launched on the 28th.

On this day, the Real Estate Reform Committee held an inauguration ceremony at the Yeouido party headquarters in the morning and announced, "We will propose the Land Profit Dividend System (Land Holding Tax) to abolish the republic of unearned real estate income, housing supply measures to realize the basic right to housing and stabilize the housing market, and plans to return development profits generated from real estate development projects to the public."

In the declaration of the launch, the Reform Committee stated, "We will raise the effective real estate tax rate to the level of major advanced countries and block unearned real estate income by using all the secured tax revenue to provide basic income to all citizens." They emphasized, "The Land Profit Dividend System will block unearned income generated from real estate and create a social structure where idle funds in the market can be invested in productive economic activities, thereby laying the groundwork for a new leap forward for the Republic of Korea."

Along with this, they announced plans to supply 2.5 million houses over the next five years, including 1 million basic housing units. They also added that they will supply 500,000 houses annually to manage the supply and demand of the housing market stably.

Furthermore, they revealed plans to expand public participation in urban development projects and strengthen regulations on the recovery of development profits from projects carried out by the private sector, thoroughly recovering unearned income generated from land use changes and attributing it to the social community. They intend to introduce a system that can directly return development profits generated from development projects involving public participation or utilizing public assets to the people.

The Real Estate Reform Committee launched on this day consists of nine subcommittees: Development Profit Recovery, Real Estate Speculation Prevention, Real Estate Legislative Reform, Housing Supply, Public Enterprise Reform, Transportation and Urban Development, Urban Renaissance, and Local Real Estate. The chairman is Professor Lee Sang-kyung of Gachon University, known as Lee Jae-myung’s 'real estate mentor.'

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