Sangwoo Park "Agree to Abolish Jaechohwan, Need to Prepare Supplementary Measures"

National Assembly Land, Infrastructure and Transport Committee Expresses Intent to Abolish Re-Chohwan and Comprehensive Real Estate Tax

Park Sang-woo, Minister of Land, Infrastructure and Transport, stated that while the reconstruction excess profit recovery system should be abolished, supplementary measures must be put in place to prevent any side effects.

Minister of Land, Infrastructure and Transport Park Sang-woo is speaking at the Land, Infrastructure and Transport Committee plenary meeting held at the National Assembly on the 10th. Photo by Hyunmin Kim kimhyun81@

On the 10th, Minister Park appeared at the National Assembly Land, Infrastructure and Transport Committee plenary session and said, "I basically agree with abolishing the reconstruction excess profit recovery system because I think it no longer fits," adding, "We will strive to prepare supplementary measures to prevent any side effects from the abolition."

Regarding the plan to prepare supplementary measures, Minister Park said, "Among reconstruction complexes, selectively retaining regulations in areas where they are absolutely necessary can serve as a supplementary measure," and predicted, "If the reconstruction burden charge is reinstated, a substantial amount will be imposed."

The reconstruction excess profit recovery law was enacted on March 27. The government and ruling party advocate for its abolition, and reconstruction associations have refused to submit data, causing local governments to be unable to impose the burden charges. Among the reconstruction burden charge target complexes, 36 complexes nationwide, about 10,000 households, have completed move-in and require burden charge calculation.

Regarding the comprehensive real estate tax, Minister Park said, "Since it was introduced mainly as a punitive tax, it should be abolished," and added, "It is appropriate to achieve revenue increase or preservation of local finances through normal fiscal methods."

To abolish the reconstruction excess profit recovery system and the comprehensive real estate tax, the law must be amended.

In response to criticism that the special loan for newborns fuels real estate price increases, he explained, "Looking at the loan performance, it is not issued enough to significantly affect the housing market," and said, "Since there are conditions such as having to give birth, net asset and housing floor area restrictions, I believe the special loan for newborns does not cause house prices to rise."

He added, "The most prioritized issue across all ministries should be overcoming the low birthrate problem."

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