Political Sphere Sparks Housing Price Surge... Will Election-Driven 'Tax Relief' Stall?

With Early Presidential Election in Mind, Parties Compete to Ease Taxes and Regulations
Concerns Over Rising Housing Prices Spread... Choi Vows to "Block Upward Factors"
Seoul City Reverses Decision on Lifting Land Transaction Permit System
Democratic Party Cautious on Easing Comprehensive Real Estate Tax... "Adjusting the Pace"

As the ruling on President Yoon Suk-yeol's impeachment trial approaches, the competition between the ruling and opposition parties to ease taxes and regulations is intensifying, leading to a spread in the rise of Seoul housing prices. Both parties appear to be focusing on real estate policies aimed at middle-class voters. However, there are signs that they are also trying to moderate the pace, as further overheating of housing prices could backfire.

View of Yeouido apartments from the 63 Building observatory. Photo by Hyunmin Kim kimhyun81@

According to political circles on the 19th, the People Power Party and the Democratic Party of Korea have effectively entered full-scale presidential election competition by pushing for the abolition of heavy taxation on multiple homeowners and raising inheritance tax exemptions, respectively. Kwon Seong-dong, floor leader of the People Power Party, announced the day before that heavy taxation on multiple homeowners would be abolished if they purchase additional houses in provincial areas. The Democratic Party revealed plans to lower the tax burden on middle-class homeowners by implementing a flat inheritance tax rate and raising or abolishing spousal exemptions.

Presidential hopefuls preparing for an early election have also joined the race to ease regulations. Seoul Mayor Oh Se-hoon's lifting of the land transaction permit system in the Gangnam 3 districts (Gangnam, Seocho, Songpa) is a representative example. However, these policies, combined with market expectations of rising housing prices and potential interest rate cuts, are rapidly driving up apartment prices in Seoul. Choi Sang-mok, Acting Prime Minister and Minister of Economy and Finance, emphasized at the morning National Affairs Ministers' Meeting following the Cabinet meeting the day before, "We are taking the real estate market situation very seriously," and pledged, "We will mobilize all available means to block factors driving up housing prices."

Voices calling for a slowdown are emerging within both parties. The Democratic Party is considering easing the comprehensive real estate tax for owner-occupiers with one house but remains cautious due to the recent rise in housing prices. A Democratic lawmaker from the Planning and Finance Committee said, "It is certain that the comprehensive real estate tax will not be further strengthened, but whether it will be eased further depends on additional data," adding, "We are reviewing easing measures, but given the recent significant rise in housing prices, we are being cautious."

In Seoul, as housing price instability grew following the lifting of the land transaction permit zones, approximately 2,200 apartments in Gangnam, Seocho, Songpa, and Yongsan districts were re-designated as permit zones on the same day. A People Power Party official commented on the lifting of the land permit system, saying, "Considering the presidential election, Mayor Oh seemed to have acted too hastily." Floor leader Kwon also announced a real estate tax reform plan the day before, stating that to prevent adverse effects, the existing taxation method would be maintained in the Seoul metropolitan area.

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