Jang Donghyuk: "Easing Regional Real Estate DSR Regulations... Increasing Loan Limits and Expanding Opportunities for Genuine Homebuyers"

The People Power Party has announced several regional economy and livelihood pledges ahead of the 9th nationwide local elections scheduled for June 3, including the easing of the Total Debt Service Ratio (DSR) regulations on local real estate and the introduction of a "Korean version of the Inflation Reduction Act (IRA)." Jang Donghyuk, leader of the People Power Party, stated, "Every vote for the People Power Party will be the most certain investment in reviving the regional economy and improving the lives of the people."

Jang Donghyuk, leader of the People Power Party, is announcing the regional economy and livelihood pledges under the slogan 'Time for Regional Economy and Livelihood to Rise!' at the National Assembly on the 29th.

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On the 29th, at the National Assembly in Yeouido, Seoul, Jang announced four major pledges for regional economy and livelihood under the slogan "Time for Regional Economy and Livelihood to Rise!" Specifically, these pledges include: ▲ resolving the polarization between the housing markets in the Seoul metropolitan area and the provinces ▲ introducing tax incentives to promote domestic production (Korean version of the IRA) ▲ establishing a safety net for small and medium-sized enterprise (SME) succession ▲ reducing the burden on SMEs and micro-business owners by cutting road occupancy fees.

Jang stated, "We will ease real estate regulations in the provinces and offer greater benefits to those who purchase homes in these areas." He continued, "Applying the same DSR regulations to the provinces as in the Seoul metropolitan area constitutes reverse discrimination against the regions." He added, "We will gradually ease local real estate DSR regulations, expand loan limits, and increase home buying opportunities for genuine demand buyers." He also said, "When purchasing unsold or old homes in the provinces, up to 75% of the acquisition tax will be reduced."

Jang also announced plans to expand the "second home" policy, which reduces tax burdens for those purchasing additional homes in population-declining areas, to include areas of concern within provincial metropolitan cities. He stated, "Even if a location is administratively classified as a metropolitan city, we will stipulate that purchases in population-declining or population-decline concern areas are eligible for the single-homeholder special provision." He added, "The officially assessed home price eligible for this special provision will be raised from 400 million won to 600 million won."

Regarding the implementation of the Korean version of the IRA, Jang described it as "a market-friendly incentive system that protects the domestic production base through a new type of tax support." He continued, "By providing direct compensation that matches the performance of companies based on their production and sales, we will dramatically increase domestic production." Furthermore, he stated, "We will include not only national strategic technologies but also all industries at high risk of manufacturing hollowing-out due to external shocks such as high tariffs as eligible for support."

The People Power Party also plans to enact a tentatively named "Special Act on SME Succession." The main point of this law is to provide institutional support for the succession of SMEs whose managers are aged 60 or older and have operated for at least 10 years. Jang explained, "We will expand the current family business succession paradigm to include broader types of business succession, such as third-party succession and mergers and acquisitions (M&A)." He also mentioned that grounds for reducing capital gains and acquisition taxes will be established, and M&A succession procedures will be simplified.

The burden of road occupancy fees, which SMEs and micro-business owners pay annually to local governments, will also be reduced. Jang stated, "As publicly announced land values rise, the burden of road occupancy fees is also increasing." He further explained, "We will pursue differential reductions in road occupancy fees, taking into account the proportion of non-tax revenues for each local government." He added, "Where possible through local ordinances, we will implement this first in regions where People Power Party mayors are elected, and we will also pursue amendments to the Road Act and the Value-Added Tax Act."

Jang emphasized, "We will revive the Korean economy and people's livelihoods not with restrictive policies, but with policies that open opportunities, and not with punitive policies, but with policies that create chances." He added, "With tailored support for each region, we will enable businesses across the country to thrive, revitalizing regional economies and improving the quality of life for our people."

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