"Supply Cliff Since 2022, Must Go All Out"… Ruling Party Also Calls It a "Crisis"

[Anchor]

President Lee Jae-myung stated that a supply cliff has persisted since 2022 and ordered an all-out, cross-agency effort to expand housing supply. The Democratic Party also pledged to fast-track legislation to boost supply. Meanwhile, a growing number of lawmakers within the Democratic Party are voicing concerns regarding the government's tax reform proposal.

Here is reporter Park Yerim with the details.

[Reporter]

During a senior secretaries' meeting held at the presidential office today (the 13th), President Lee Jae-myung said, "Real estate is a core issue that has a profound impact on almost every aspect of our society," adding, "We must concentrate all available means and capabilities to resolve it."

[President Lee Jae-myung : An organic combination of unconventional and rapid supply, a fair and rational tax system, and meticulous, robust financial policies is more essential than ever.]

Regarding the housing supply shortage, he added that the country has been experiencing a "supply cliff" since 2022, calling for extraordinary efforts.

[President Lee Jae-myung : We must launch an all-out, cross-the-board supply offensive. We must secure land sites unconventionally—free from existing regulations and even revising laws and systems if necessary—to push forward with supply.]

On the real estate tax reform proposal, the President repeatedly urged policy flexibility, stating, "Please boldly gather the opinions of the public, experts, opposition parties, and the political sphere."

President Lee also pointed out the unreasonableness of the "marriage penalty," where married couples actually face disadvantages in loans or taxes compared to when they were single.

The Democratic Party responded in kind to the government's stance on expanding supply, pledging prompt legislative support.

However, regarding the government's tax reform proposal, calls for amendments erupted among lawmakers during a closed-door general meeting.

[Lee Joo-hee / Democratic Party Floor Spokesperson : Lawmakers representing various regions expressed the need to fully account for the realities and pending issues of their respective areas....]

A senior lawmaker representing a district in Seoul stated, "We must protect single-home owners, but it is harsh to make exceptions just because a property is non-residential."

Some lawmakers argued for keeping the long-term holding special deduction system as it is, rebelling against the government's proposal to gradually phase out "tax benefits based on ownership." Others complained that many of their constituents are protesting the tax reform plan as a tax hike, with some even venting that if the government's plan passes the National Assembly unamended, "it will lead to a total collapse."

(Photo courtesy of Ha Ryung, Yoon Hyung | Video by Jeon Min-gyu | Graphics by Kang Yoon-jung)

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