Democratic Party Considers Permanent Suspension of Capital Gains Tax for Multiple Homeowners

Democratic Party Moves to Revise Real Estate Policies Ahead of Local Elections
Focus Remains on Maintaining the Three Major Lease Laws

[Asia Economy, Reporter Oh Jooyeon] The Democratic Party of Korea plans to actively revise its real estate policies ahead of the June 1 local elections. In response to President-elect Yoon Suk-yeol's various moves to ease real estate regulations, the Democratic Party has also brought forward the option of easing capital gains taxes for owners of multiple properties.

Kim Sung-hwan, Chair of the Democratic Party's Policy Committee, discussed the issue of temporarily suspending the heavy capital gains tax on owners of multiple properties during an interview with KBS Radio on March 30. He stated, "We are currently reviewing whether to temporarily suspend the tax or to introduce a new system in which owners of multiple properties would systematically bear taxes on their holdings, potentially moving toward a more permanent measure." He thus mentioned the possibility of a permanent suspension of the increased capital gains tax for multiple property owners.

He added, "If the suspension is only temporary, the increased tax will be reinstated once the suspension ends, making it nearly impossible for properties to be put on the market at that time." He continued, "We plan to review both the pros and cons, including permanent solutions to such issues, to develop a more rational system." He also stated, "This issue will be discussed at the general assembly of lawmakers tomorrow."

However, regarding the Presidential Transition Committee's stance to abolish or reduce the three major lease laws, he said, "While we can supplement parts that are lacking, it is not appropriate to undermine the fundamental purpose of the system," expressing his support for maintaining the three major lease laws. He emphasized, "Since the implementation of the three lease laws, the contract renewal rate has increased from 57% to 70%, which demonstrates the positive aspects of the system."

On the same day, Yoon Ho-jung, Chair of the Democratic Party's Emergency Response Committee, also appeared on MBC Radio and criticized the transition committee's plan to abolish or reduce the three major lease laws, saying, "There is a serious risk of making a grave mistake by overcorrecting." He pointed out, "Since the implementation of the three lease laws, the renewal rate for the top 100 apartment complexes in Seoul has risen to 78%, and the average tenancy period for renters has increased from 3.5 years to 5 years over the past two years." He stressed, "This shows that the residential stability of tenants and those without homes is improving."

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