Government and Ruling Party Propose Compromise on 'Comprehensive Real Estate Tax Relief Law'... Democratic Party "Unacceptable"

Proposed Compromise of 1.2 Billion Won for 'Special Deduction Amount'... Disagreement over 'Fair Market Value Ratio'

[Image source=Yonhap News]

[Asia Economy Reporter Heo Kyung-jun] The ruling and opposition parties remain at an impasse over the introduction of the 'Special Comprehensive Real Estate Tax Deduction of 300 million KRW,' which would raise the deduction amount for first-generation single-homeowners from 1.1 billion KRW to 1.4 billion KRW for this year only.

On the 30th, the government and ruling party proposed a compromise plan to keep the fair market value ratio at 60% and increase the special deduction amount by 100 million KRW to 1.2 billion KRW, but the opposition Democratic Party declared the proposal 'unacceptable.'

The Democratic Party has expressed a negative stance on raising the special deduction amount while maintaining the fair market value ratio at 60%.

The government and ruling party lowered the fair market value ratio from the originally planned 100% this year to 60% to revert the comprehensive real estate tax burden on first-generation single-homeowners to the 2020 level. After lowering the fair market value ratio to the statutory adjustment limit of 60%, they introduced a bill to add a special comprehensive real estate tax deduction of 300 million KRW because the 2020 level was still not reached.

As the passage of the comprehensive real estate tax relief bill in the National Assembly faced repeated difficulties, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho met with opposition members at the National Assembly on the same day to request prompt passage of the law.

Deputy Prime Minister Choo reportedly explained the compromise plan and sought cooperation by meeting with Shin Dong-geun, the Democratic Party's ranking member of the Planning and Finance Committee, and Kim Jin-pyo, the Speaker of the National Assembly from the Democratic Party.

Park Dae-chul, chairman of the ruling party's Planning and Finance Committee, and Ryu Seong-geol, the committee's ranking member, plan to continue contacting the opposition to try to reach a compromise.

The People Power Party sent a text message to members of the Planning and Finance Committee stating, "Final negotiations between the ruling and opposition party ranking members regarding the comprehensive real estate tax law are currently underway, and once a final agreement is reached, a plenary session will be convened at 10 a.m. tomorrow (31st), so please remain on standby within the premises," effectively issuing a 'call to convene.'

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