Democratic Party Blocks Yoon Government's Abolition of Progressive Acquisition Tax on Multiple Homeowners

Yoon Government Discusses Abolishing Progressive Acquisition Tax for Multi-Homeowners Next Year Following 종부세 and Capital Gains Tax
Opposition Kim Seonghwan, Policy Committee Chair: "If Progressive Tax Is Eased, Ultra-Rich Will Resume Real Estate Speculation"

YTN Privatization Further Weakens Public Broadcasting Structure... Will Block It by Any Means
Grain Management Act Must Be Finalized This Year... Referred to Plenary Session with Three-Fifths Approval in Agriculture, Food, and Rural Affairs Committee

[Asia Economy Reporter Oh Ju-yeon] On the 20th, the Democratic Party of Korea clearly expressed opposition to the government's plan to abolish the acquisition tax rate surcharge system for multi-homeowners, stating, "The Democratic Party has no intention of changing the progressive acquisition tax system for multi-homeowners."

Kim Seong-hwan, chairman of the Democratic Party's Policy Committee, held a press conference at the National Assembly that morning and said, "If this system is relaxed again, the ultra-rich in Korea will speculate on real estate again during this period," emphasizing, "The Democratic Party will not touch the progressive acquisition tax system for multi-homeowners."

[Image source=Yonhap News]

Currently, a 1-3% acquisition tax is imposed when acquiring one house. For two houses, it is 8%, and for three or more houses and corporations, it is 12%. The government is reportedly considering lifting the multi-homeowner acquisition tax surcharge system as one of the tasks in next year's economic policy direction.

Chairman Kim criticized, "Although it is not attached to this year's supplementary budget bill, the government is saying that next year they will again abolish the progressive acquisition tax system for multi-homeowners related to real estate and revert to the past," calling it "an attempt to turn back history."

He questioned, "Shouldn't maintaining this system allow the homeless and ordinary people to have the dream of owning a home after housing prices stabilize?" and said, "Maintaining the progressive acquisition tax system for multi-homeowners is the hope for these groups (the homeless and single-homeowners)."

On the same day, Chairman Kim also pointed out the government's plan to raise the non-taxation threshold for stock capital gains tax as a 'policy for the ultra-rich.'

Kim said, "The government and ruling party are trying to regressively raise the non-taxation threshold from 1 billion KRW to 10 billion KRW, and even increase the family combined 1 billion KRW to 10 billion KRW per individual," criticizing, "They are consistently pursuing policies thoroughly for the ultra-rich."

Regarding the Grain Management Act pending in the National Assembly's Legislation and Judiciary Committee, he mentioned plans to process it within the year.

He explained, "The Grain Management Act related to stabilizing rice prices passed the Agriculture, Food, Rural Affairs Committee 60 days ago," but added, "(However, the Legislation and Judiciary Committee) is unlikely to pass it, so it should return to the Agriculture, Food, Rural Affairs Committee and be directly referred to the plenary session by a three-fifths vote." He continued, "I expect that the Grain Management Act should be finalized within this year to ease farmers' worries without carrying it over to next year."

Regarding the Safe Freight Rate System, which is set to expire this year, he said, "It is like a seatbelt for freight transport workers," and emphasized, "It must be extended."

On the two-year postponement of the additional 52-hour workweek system for workplaces with fewer than 30 employees ending this year, he said, "There are requests to extend it. Considering the labor rights of working workers, we are thinking about how to harmonize it." He added, "There was also a meeting of the Standing Committee on Environment and Labor, and we will proceed reasonably."

Regarding the recent controversy over media privatization, specifically the 'YTN privatization,' he expressed opposition, calling it "gagging the media."

Chairman Kim said, "YTN privatization will further weaken the structure of Korea's public broadcasting," and added, "It seems they plan to sell all shares by the second half of 2023. The Democratic Party's position is to block it by any means."

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