Comprehensive Real Estate Tax Basic Deduction for Non-Resident Single-Home Owners Maintained at 1.2 Billion Won

[Anchor]

The government has reversed its previous plan to reduce the basic deduction threshold for the comprehensive real estate holding tax for non-resident single-home owners to 900 million won, deciding instead to maintain it at the current 1.2 billion won. It also announced that the 820 trillion 900 billion won budget bill for next year will focus heavy investments on ultra-gap industries such as artificial intelligence.

For our first news report, we turn to reporter Lee Tae-gwon.

[Reporter]

The government announced during a cabinet meeting today (September 1) that it has decided to keep the basic comprehensive real estate tax deduction for non-resident single-home owners at the current publicly assessed value of 1.2 billion won.

In last month's tax code revision proposal, the government had initially stated it would lower the basic deduction to 900 million won. However, amid a barrage of criticism that the measure would impose an excessive tax burden on non-resident single-home owners, and with the ruling party pointing out that the scope of recognized actual residency should be expanded, the government returned to the original policy just 29 days after its announcement.

Regulations concerning Individual Savings Accounts (ISAs), which had drawn backlash from investors, were also reverted to their pre-revision state, allowing unused annual contribution limits to be rolled over as before and removing restrictions on the maximum contract period.

Next year's budget bill, scaled at 820 trillion 900 billion won, also passed the cabinet meeting today.

This represents a 12.8 percent increase compared to this year's budget of 727 trillion 9천억 원, marking the largest expansion in 18 years since 2009.

This follows projections that next year's national tax revenue will increase by 194 trillion 200 billion won to reach 584 trillion 400 billion won, driven by a sharp surge in corporate and income taxes resulting from the semiconductor boom and stock market rally.

Regarding the "super budget" exceeding 800 trillion won, the government stated that it must serve as a stepping stone to leap forward as an ultra-gap leading nation, and vowed to concentrate investments in five key areas, including artificial intelligence and advanced technology.

[President Lee Jae-myung: "A productive, virtuous fiscal strategy is essential to expand the economic pie with increased future financial resources, upgrade industrial capabilities, and thereby expand fiscal capacity once again."]

In particular, the government announced the establishment of a future response fund amounting to 162 trillion 3천억 원, planning to invest 45 trillion 400 billion won across four major areas: youth, growth engines, regional development, and education and talent.

The remaining funds are planned to be operated as surplus reserves to cope with fluctuations in tax revenue.

Following its submission to the National Assembly early this month, next year's budget bill will undergo review by each standing committee and the Special Committee on Budget and Accounts, before being finalized in December.

(Video Editing: Kim Ho-jin)
※ Please note: This article was translated by AI and may contain errors.