DP to "Monitor Tax Reform Impact" Amid Concerns Over Heavier Burden on Non-Resident Owners

Lawmakers representing the ruling Democratic Party in Seoul have decided to closely examine the impact of the government's proposed real estate tax revisions on the jeonse and monthly rent markets.

The party also plans to closely monitor taxation targeting single-home owners who do not reside in their properties.

Rep. Kim Young-bae (Seongbuk A) told reporters that the Democratic Party's Seoul chapter discussed these matters during a real estate policy response meeting held at the National Assembly today (the 6th).

"One of the core resolutions today is to closely monitor what kind of impact the tax system has on the market, how it affects citizens' lives such as jeonse and monthly rent, and what kind of measures are necessary," Rep. Kim said.

He added, "Since there are many issues raised regarding single-home non-residents within the tax system, there was a discussion to focus our monitoring on that area with considerable interest."

In fact, it was reported that concerns were raised during the meeting that the upcoming revision would increase the tax burden on single-home owners who do not live in their homes.

The revision plan distinguishes single-home owners into actual residents and non-residents, setting different basic deduction limits at 1.4 billion won and 900 million won, respectively.

Under the current system, a basic deduction standard of 1.2 billion won is applied to any single-home owner regardless of residency.

Regarding this, a lawmaker attending the meeting pointed out in a phone call, "Are there not people who inevitably cannot live in their own homes?" and added, "In such cases, the difference in tax burden between actual residents and non-residents is too large."

The lawmaker continued, "It means the tax difference can be 5 to 7 times for an apartment of the same size. This is not fair," adding that suggestions were made at the meeting to expand exceptions for reasons such as supporting family, employment, or overseas migration, or to establish sufficient grace periods for existing long-term owners.

Rep. Hwang Hee (Yangcheon A, Seoul) also wrote on Facebook, "It is right to protect all single-home owners regardless of whether they reside in them or not," adding, "Owning a single home is a basic right."

He then proposed running housing supply policies in parallel, such as providing an exit route for sales in reconstruction complexes within speculative overheating districts and developing mixed housing on school sites.

Rep. Yoon Kun-young (Guro B, Seoul) said in an MBC radio interview, "It is right to untangle the knotted parts, such as supply issues or loan issues."

However, Rep. Jin Seong-joon (Gangseo B) acknowledged the intent of the government's revision plan at the meeting, stating, "There should be no further retreat."

Discussions on real estate supply measures for the Seoul region also took place at today's meeting.

During this process, criticisms were raised against the housing supply policies of Seoul Mayor Oh Se-hoon, who belongs to the opposition People Power Party.

Rep. Kim Young-bae said, "Mayor Oh claims he will supply 90,000 units through his redevelopment and reconstruction projects, but more than 220,000 households are being demolished," adding, "A problem immediately arises as to where 130,000 households will go, and jeonse and monthly rent concerns emerge in that process."

Regarding the central government's housing supply measures, he emphasized, "We will discuss them while looking at the government proposal [to be announced soon]," adding, "It is the responsibility of the Seoul chapter to ensure that Mayor Oh and the Lee Jae-myung administration join hands to realize proper supply measures."

Rep. Kim Nam-keun said, "The government is trying to carry out large-scale housing supply projects, but is Seoul City not cooperating?" and added, "We must focus on solving the supply cliff problem."

Rep. Lee So-young (Uiwang-Gwacheon), whose constituency is in Gyeonggi Province, also posted on Facebook, "There is an old contradiction where parks and gardens are built in the center of Seoul while apartment complexes are built in Gyeonggi Province, forcing round-trip commutes lasting several hours." She urged Mayor Oh, saying, "If Seoul's housing shortage is worsening due to his incompetence, he must actively seek and present solutions to fix the problem."

Seoul Metropolitan Council members also attended today's meeting.

Rep. Kim Nam-keun stated, "Opinions emerged to establish a meeting of Seoul-based National Assembly members and Seoul Metropolitan Council members as an official body under the Seoul chapter."

Rep. Kim Young-bae said, "We will create a special headquarters within the Seoul chapter to respond to Seoul Mayor Oh Se-hoon's administration, and handle related issues at the headquarters level going forward."

The Seoul chapter decided to hold a meeting focusing on real estate supply measures around the 13th.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.