"Suspicion that Moon Administration Intentionally Downplayed Tax Burden While Ignoring Rising Housing Prices"

Yoo Kyung-jun, People Power Party Lawmaker: "Purpose of Forcing the Publicly Announced Price Realization Roadmap"

Excerpt from the 'Study Report on the Establishment Plan for the Roadmap to Realize the Publicly Announced Real Estate Prices' ＜Source: Office of Representative Yoo Kyung-jun, People Power Party＞

Suspicions have been raised that the Moon Jae-in administration deliberately downplayed the increase in tax burden while establishing the roadmap for the realization of real estate official prices.

According to the 'Study on the Establishment Plan for the Roadmap to Realize Real Estate Official Prices' submitted by the Ministry of Land, Infrastructure and Transport to Yoo Kyung-joon, a member of the National Assembly Land, Infrastructure and Transport Committee from the People Power Party on the 5th, the data showed that the simulation for estimating holding tax was conducted on the assumption that housing prices would remain stable.

The report states, "Since price fluctuations were not reflected, there will be no changes in official prices and property taxes from 2030, when the target realization rate of 90% is reached."

Currently, official prices are used as the basis for a total of 67 systems, including property tax, comprehensive real estate holding tax, health insurance premiums, development charges, and reconstruction excess profit recovery.

Rep. Yoo said, "At that time, the actual transaction price of apartment complexes rose by 12% compared to the previous year (as of November 2020), and given the real estate market atmosphere, anyone could have expected a surge in real estate prices," adding, "Conducting simulations on the assumption that housing prices would remain stable in the research project appears to be an intentional attempt to minimize the impact of the tax bomb on the public."

Cover of the 'Research Report on Establishing a Roadmap for the Realization of Officially Announced Real Estate Prices'

Rep. Yoo stated, "Official prices are used in more than 60 items including welfare and charges beyond the tax sector," and "this clearly shows that the research project was a showy effort to forcibly push up the realization rate."

Meanwhile, the Moon Jae-in administration announced the plan to realize official prices in November 2020, setting a goal to raise official prices to 90% of market prices by 2030.

However, as real estate prices surged afterward, complaints arose that the tax burden was excessively increased not only for multi-homeowners but also for single-homeowners due to the official price realization work conducted during the same period.

The Yoon Suk-yeol administration plans to announce a revised plan reflecting next year's official prices in November and to conduct a full review of the official price realization plan.

The Ministry of Land, Infrastructure and Transport recently selected the Korea Research Institute for Human Settlements and the Korea Institute of Public Finance as contractors for the 'Study on Revising and Supplementing the Official Price Realization Plan and Improving the Official Price System' and received commencement reports from both institutions.

However, concerns have been raised about this as well. Rep. Yoo said, "It is known that the Ministry of Land, Infrastructure and Transport commissioned the re-examination research project to the same institutions as before," adding, "It is doubtful whether conducting a new research project without resolving the existing problems will be effective."

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