Rival Parties Unanimously Warn of Rising Jeonse and Monthly Rent Prices Amid Flood of Concerns

[Anchor]

Today, the National Assembly's Land, Infrastructure and Transport Committee held a session dealing with real estate policies. A flood of opinions emerged calling for revisions or supplements to government real estate policies, including the tax reform bill. In particular, lawmakers from both ruling and opposition parties voiced concerns that if the tax burden on "non-resident single-homeowners" increases, jeonse (lump-sum housing deposits) and monthly rent prices will rise.

Here is reporter Park Chan-beom with the details.

[Reporter]

This afternoon, a plenary meeting of the National Assembly's Land, Infrastructure and Transport Committee.

Quite a few lawmakers from both the ruling and opposition parties expressed concern that if the government's tax reform plan strengthens the tax burden on "non-resident single-homeowners," jeonse and monthly rent prices will surge as the burden is passed on to tenants or as more tenants are forced out.

[Kim Mi-ae / People Power Party Lawmaker: What should homeowners do if it is difficult for them to either actually reside in the home or sell it? They might reflect the increased tax burden onto rent.]

[Kang Deuk-gu / Democratic Party Lawmaker: If non-resident single-homeownership is regulated, owners must either actually reside in that house or sell it. From the tenant's perspective, situations arise where they have to vacate the home.]

Regarding criticisms that the comprehensive real estate holding tax burden increases significantly for "non-resident single homes" under joint ownership by married couples, Minister of Land, Infrastructure and Transport Kim Yoon-deok replied that if joint taxation is disadvantageous, taxpayers can choose to apply the special taxation provision for single-home households.

[Kim Eun-hye / People Power Party Lawmaker: The president has also encouraged marriage, so shouldn't this be eliminated as well?]

[Kim Yoon-deok / Minister of Land, Infrastructure and Transport: I understand that the special provision [for single-home owners] can be applied.]

Regarding low-interest policy loans, there were also criticisms that the so-called "marriage penalty," where getting married actually lowers the combined annual income threshold and disqualifies couples from receiving loans, needs to be improved.

[Mo Kyung-jong / Democratic Party Lawmaker: For newlyweds, the standard is an annual income of 85 million won or less. The threshold for a single person was 60 million won, and this is actually shrinking in reality.]

Regarding the shortage of housing supply in Seoul, rival parties engaged in a blame game.

[Kim Nam-keun / Democratic Party Lawmaker: (Seoul Mayor Oh Se-hoon) did not manage housing starts. With this happening continuously for four years, how can housing supply go well?]

[Kim Jeong-jae / People Power Party Lawmaker: During the 10 years of former Seoul Mayor Park Won-soon, about 400 redevelopment zones were canceled.]

Minister Kim expressed regret over the recent simultaneous rise in real estate sales and jeonse and monthly rent prices, stating that the government will increase housing supply in the metropolitan area even if it means lifting greenbelt restrictions.

(Video reporting: Lee Seung-hwan, Shin Dong-hwan | Video editing: Nam Il)
※ Please note: This article was translated by AI and may contain errors.