Democratic Party "Push for Refunds on 'Unfair Comprehensive Real Estate Tax' for Temporary Two-Homeowners"

Representative Cases of Inheritance and Cooperative Social Housing Including Moving and School Enrollment
Finance Committee to Pass Tax Special Cases Act and Return It
Will Also Address Improvement of Heavy Capital Gains Tax System for Multi-Homeowners

Kim Seong-hwan, Chairman of the Policy Committee, attended the floor countermeasure meeting held at the National Assembly on the 22nd of last month, speaking while showing a distance chart related to the relocation of the Yongsan Blue House office and residence during the meeting. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Hyunju Lee] The Democratic Party of Korea announced on the 7th that it will pursue a plan to refund the comprehensive real estate tax unfairly imposed on temporary two-homeowners and others.

Kim Seong-hwan, chairman of the Democratic Party's Policy Committee, said at the policy coordination meeting on the same day, "There were cases where the comprehensive real estate tax was unfairly imposed on people who were effectively single-homeowners during the multi-homeowner tax imposition process at the end of last year." He explained, "Typical cases include those who temporarily became two-homeowners due to moving or school enrollment, those classified as multi-homeowners due to inherited shares, houses under clan ownership, or cooperative-type social housing."

He continued, "The government and the Democratic Party excluded unfairly taxed individuals from the target group starting in 2022 through an amendment to the enforcement ordinance at the end of last year, but there is currently no law to refund the comprehensive real estate tax already imposed. We will resolve this by passing the Special Tax Treatment Control Act, currently pending in the Planning and Finance Committee, proposed by Representative Yoon Hu-deok, with a spirit of responsibility to refund the unfairly imposed comprehensive real estate tax," he said.

He also stated that they will actively discuss measures to improve the heavy capital gains tax system for multi-homeowners. Chairman Kim said, "Last year, for the first time, the progressive comprehensive real estate tax significantly increased the holding tax burden on multi-homeowners, and the heavy capital gains tax system for multi-homeowners was also implemented for the first time, making it difficult to hold or sell properties. There is a need to supplement the system so that multi-home real estate can come onto the market, even temporarily. The government will revise the enforcement ordinance to resolve the situation where holding and selling are both impossible and will do its best to contribute to stabilizing the real estate market.

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