Democratic Party: "Yoon Government's Real Estate Policy Differs from Moon Government Only in Wealth Tax Cuts"

Sung-hwan Kim, Chairman of the Policy Committee: "Yoon only proposes supplementary measures for the 3 Lease Laws, and the price ceiling system is the same"
"Lowering the fair market value ratio to 60% is a significant tax cut for the wealthy"

Kim Seong-hwan, Chairman of the Policy Committee of the Democratic Party of Korea, is attending the Policy Coordination Meeting held at the National Assembly on the 16th and delivering an opening remark. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Naju-seok] The Democratic Party of Korea evaluated on the 23rd that there is "no significant difference from the Moon Jae-in administration's real estate policy" regarding the Yoon Seok-yeol government's real estate policy. However, they pointed out that the difference lies in the fact that the real estate measures are also aligned with tax cuts for the wealthy.

Kim Seong-hwan, chairman of the Democratic Party's Policy Committee, made this assessment during the Democratic Party's policy coordination meeting on the same day concerning the Yoon Seok-yeol government's first real estate policy. He stated, "The three lease laws, which were immediately labeled as social evils that must be abolished, have had some supplementary measures announced, and the pledge to abolish the price ceiling on pre-sale prices was at a similar level," adding, "It is a case of Taesanmyeongdongseoilpil (泰山鳴動鼠一匹)."

Taesanmyeongdongseoilpil means "The great mountain shook as if it would collapse, but only a single mouse came out," implying that the announcement was grandiose but the result was insignificant.

Chairman Kim pointed out, "Looking at the comprehensive real estate tax reform plan, the fair market value ratio is lowered to 60%, which is expected to result in significant tax cuts for the wealthy," and added, "According to the Ministry of Economy and Finance's review, for a household with two homes and a combined publicly announced price of 3.56 billion won, the comprehensive real estate tax will be reduced from 94 million won to around 46 million won, about a 50% tax cut, and for real estate with a combined publicly announced price of 2.47 billion won, it will be reduced from about 50 million won to 21 million won, approximately a 60% tax cut."

He said, "The substantial reduction in the fair market value ratio means that multi-homeowners will receive concentrated tax benefits, which can only be described as a tax cut policy for the wealthy, similar to the reduction of the highest corporate tax rate targeting the 0.01% conglomerates and large corporations," and stated, "I cannot agree with the comprehensive real estate tax cuts that encourage excessive unearned income from real estate for multi-homeowners."

Chairman Kim added, "The comprehensive real estate tax is collected as a national tax and is fully used as local government resources for balanced regional development, and if the comprehensive real estate tax imposed on high-priced multi-homes is reduced, national imbalance in development will worsen," and concluded, "The Yoon Seok-yeol government's tax cut policies for the wealthy, such as reductions in corporate tax and comprehensive real estate tax, should rightfully be withdrawn."

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