1 week ago
South Korea Party, Government Seek Tax Relief for Homeowners
South Korea wants to change taxes for some people who own one home.
The proposed change could make taxes higher for owners who do not live in that home.
The government and the ruling Democratic Party agreed that the rule may be too strict.
They want to recognize more unavoidable reasons why someone cannot live in their property.
The party leader said the proposal needs more discussion.
The government also wants to build more homes around Seoul.
Officials said people need clear information about where and when homes will be built.
They asked local leaders to suggest land that could be used for construction soon.
South Korea’s government and ruling Democratic Party agreed that a proposed tax revision may need relaxation.
The proposal would reduce the basic deduction for affected single-home owners from 1.2 billion won to 900 million won.
The Democratic Party called for broader recognition of unavoidable reasons owners may not live in their property.
The two sides agreed to pursue permits allowing local chiefs to approve residential complexes of up to 500 units.
Officials urged clearer housing-supply information and asked local leaders to identify land for immediate construction.
- Who
- South Korea’s government and ruling Democratic Party, including party leader Kim Min-seok and senior officials.
- What
- They agreed to consider relaxing a proposed tax revision affecting single-home owners who do not live in their property, while pursuing housing-supply measures.
- Where
- At Prime Minister Han Seong-sook’s official residence, following a briefing at the National Assembly in Seoul.
- When
- Sunday, at the first high-level policy coordination meeting since Kim Min-seok was elected Democratic Party leader the previous Monday.
- Why
- To address concerns that the proposed tax change could unfairly affect owners with unavoidable reasons for not living in their property and to ease housing-supply anxieties.
Tax-relief advocates
Tax-revision proposal
Tax treatment of nonresident owners
Tax-relief advocates
The Democratic Party said residency rules should recognize a wider range of inevitable reasons owners cannot live in their property and should remove blind spots.
Tax-revision proposal
The government’s proposal would reduce the basic deduction for affected single-home owners, effectively increasing their tax burden.
Timing of the revision
Tax-relief advocates
Democratic Party leader Kim Min-seok said more deliberation was needed before proceeding with the proposal.
Tax-revision proposal
The government is advancing the tax-code revision alongside efforts to increase housing supply in the greater Seoul area.
Key facts
- Proposed tax change
- The basic deduction for the comprehensive real estate holding tax would fall from 1.2 billion won to 900 million won for affected owners.
- Affected owners
- Single-home owners who do not live in the property.
- Party-government position
- Both sides agreed that the proposed tax revision may need to be relaxed.
- Residency recognition
- Officials discussed recognizing more unavoidable reasons for not living in a property.
- Construction permits
- They agreed to pursue legislation allowing local government chiefs to approve residential complexes of up to 500 units.
- Housing-supply communication
- Presidential chief of staff Kang Hoon-sik called for clear signals about when, where and how many units will be built.
- Immediate construction
- Local party leaders were asked to suggest land for near-term housing construction.
Quotes
Park Sung-joon
Senior spokesperson for South Korea’s Democratic Party
“A consensus was formed between the party and the government on various opinions, such as expanding residency recognition for people who do not live in their property for inevitable reasons.”
thehansindia.com
thehansindia.com
“We need to broadly recognise the various inevitable reasons for not living in the property and remove blind spots.”
thehansindia.com
thehansindia.com
Sources
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