"Reduction of Tax Burden for Multi-Homeowners"… Yoon Urges 'Active Tax Relief' (Comprehensive)

- Presiding over the Emergency Economic and Livelihood Meeting and the National Economic Advisory Council, Mentioning 'Housing Cost Burden'
- President Yoon: "Passed Directly to Tenants," Democratic Party Opposes Abolishing Heavy Taxation
- Union Corruption, Along with Public and Corporate Corruption, to Be Eradicated as Three Major Corruptions... State Supports Export and Trade

[Asia Economy Reporters Baek Kyunghwan and Lee Gimin] President Yoon Suk-yeol stated on the 21st, "We must significantly ease the tax burden on multi-homeowners to reduce the housing cost burden on the public." Since the heavy taxation on multi-homeowners is being passed on to economically vulnerable tenants, the intention is to ease taxation on multi-homeowners to create conditions where tenants in disadvantaged market positions can rent at lower prices.

On the morning of the same day, President Yoon presided over the 12th Emergency Economic and Livelihood Meeting and the 1st National Economic Advisory Meeting at the Blue House State Guest House, saying, "Due to high interest rates, real estate and asset values are declining, which could lead to serious debt problems for households and companies. We must manage this well to prevent it from expanding into household and corporate insolvency, and further into financial sector insolvency."

In particular, President Yoon explained, "In the past, those who dealt with real estate issues ideologically believed that heavy taxation on multi-homeowners was ethically correct, but now, in a global high-interest-rate environment, when asset values including real estate decline, people prefer renting over buying homes." He added, "Ultimately, rental supply comes from multi-homeowners, so the tax burden is directly passed on to tenants, increasing the housing cost burden on the public."

However, the government did not present specific measures while disclosing the economic policy direction that day. The Ministry of Economy and Finance only mentioned in a prior briefing, "We expect to provide full details by early January at the latest." Currently, it is highly likely that the conclusion on the capital gains tax surcharge rate for multi-homeowners will be reached through the tax reform plan in July next year.

President Yoon mentioned each task of the three major reforms (labor, education, pension), saying, "Even if unpopular, these must be accomplished for the country's future and future generations," emphasizing, "We must make 2023 the inaugural year for promoting the three major reforms (labor, education, pension)." He instructed the relevant ministries to conduct detailed selection, public discussion, and prepare social consensus plans regarding the reforms.

President Yoon also stated, "We must activate reforms to eliminate accumulated evils and improve systems." This is the first time President Yoon has adopted the slogan of eliminating accumulated evils, which was a banner of the previous Moon Jae-in administration, as a governing principle. Among the three major reforms?labor, pension, and education?President Yoon identified 'labor reform' as the most urgent task and reaffirmed the plan to accelerate related legislation starting next year. He added, "Reforms must be promoted swiftly and strongly under social consensus."

Regarding union corruption, along with public office corruption and corporate corruption, President Yoon pointed it out as one of the three major corruptions that must be eradicated in our society and urged strict law enforcement. He said, "Labor-management rule of law is an unavoidable task to properly build and grow the country," adding, "To reduce inefficient disputes in labor-management relations and use those costs for workers' welfare, labor-management rule of law must be firmly established."

Regarding exports and industry, he explained that national policy support is essential not only for economic cooperation with emerging markets, infrastructure orders, and trade but also for investment and support in strategic industries for future generations. According to a press release from the presidential office, during a closed-door work report, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho presented the economic policy direction for next year, explaining key policies for overcoming challenges and economic re-leap along with economic forecasts.

During the discussion following the report, topics such as stable macroeconomic management to overcome the economic crisis and measures to restore the livelihood economy were discussed. Regarding post-crisis re-leap, private participants and government officials also debated fostering new industries and structural reforms. The meeting was attended by Prime Minister Han Duck-soo and ministers of related economic departments. From the private sector, two economic organization heads attended: Chairman Choi Tae-won of the Korea Chamber of Commerce and Industry and Chairman Koo Ja-yeol of the Korea International Trade Association. Additionally, 29 advisory members including Lee In-ho, Vice Chairman of the National Economic Advisory Council (Emeritus Professor of Economics at Seoul National University), who received a commission certificate from President Yoon before the meeting, presidential office staff, and Seong Il-jong, Policy Committee Chairman of the People Power Party, totaling about 60 participants.

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