Kim Yongbeom: "Property Holding Taxes Are Low, Tax Policy Must Also Be Considered"

Policy Chief's Interview with Sampyo TV Released on the 15th
"It Is Incorrect to Say Tax Policy Cannot Be Adjusted"

Kim Yongbeom, Chief of Policy Office at the Presidential Office, is briefing on President Lee Jae-myung's meeting with Sam Altman, CEO of OpenAI, at the Yongsan Presidential Office on the 1st. Photo by Yonhap News

Kim Yongbeom, Chief of Policy Office at the Presidential Office, stated on the 15th, "We need to consider tax policy as part of real estate measures," and acknowledged, "It is true that property holding taxes are low." He emphasized, "It is incorrect to say that tax policy cannot be adjusted."

Kim made these remarks during an interview released on the YouTube channel 'Sampyo TV' on the same day. He explained, "Because supply operates on a three to four-year cycle, a short-term recovery in demand inevitably stimulates prices. With the stock market having risen by 40 percent, demand for real estate is also recovering. Therefore, we have no choice but to implement aggressive demand-suppression measures."

Regarding real estate taxation, Kim expressed the view that "the entire system of acquisition, holding, and transfer taxes should be seriously reviewed." When asked whether he was referring to a tax increase, Kim responded, "It is about normalizing the real estate tax system," adding, "There is a direction where property holding taxes are strengthened while transactions are facilitated."

He further pointed out, "Even compared to the global average, the tax burden is low," and reiterated, "It is incorrect to say that tax policy cannot be adjusted." He added, "Policies for real estate stability and housing welfare must encompass both tax policy and supply."

In response to criticism questioning the government's willingness to increase supply, Kim acknowledged, "Both supply and tax policy are difficult. Redevelopment projects are entangled with various interests and require a sophisticated approach at the societal level. Although land is available, it is concentrated in areas where capital gains are focused, making coordination challenging."

However, Kim admitted the necessity of supply measures, stating, "It takes time, but we must be determined and proceed."

On this day, the government announced a set of measures to stabilize the housing market in a joint briefing with relevant ministries. The alternatives include a plan to rationalize the tax system, which involves adjusting property holding and transaction taxes.