"Supply Cliff Since 2022, All-Out Effort Needed"... Ruling Party Also Agrees It's a "Crisis"

President Lee Jae-myung pointed out that a supply cliff has persisted since 2022, ordering an all-out, across-the-board effort to boost housing supply. The Democratic Party also pledged to accelerate legislative procedures to expand supply. However, a growing number of Democratic lawmakers have voiced concerns regarding the government's tax reform proposal.

Here is reporter Park Yerim with the details.

[Reporter]

During a senior aides' meeting held at the presidential office today (August 13), President Lee Jae-myung stated, "Real estate is a core issue that profoundly impacts 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 detailed, robust financial policies is more essential than anything else.]

Regarding the housing supply shortage, he added that the situation has been a "supply cliff" from 2022 to the present, requiring exceptional efforts.

[President Lee Jae-myung: We must launch an all-out, comprehensive supply campaign. We must secure housing sites through bold measures—unbound by existing regulations and modifying laws and systems if necessary—to push forward with supply.]

On the real estate tax reform plan, he repeatedly called for policy flexibility, stating, "Please boldly gather the opinions of the public, experts, opposition parties, and the political sphere."

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

The Democratic Party responded to the government's supply expansion policy and pledged prompt legislative support.

However, regarding the government's tax reform bill, a closed-door general meeting of lawmakers saw an outpouring of demands for amendments.

[Lee Ju-hee / Democratic Party Floor Spokesperson: Regional lawmakers noted that there is a need to fully consider the realities regarding local issues....]

A senior lawmaker representing a Seoul constituency expressed the stance that "single-home owners residing in their property must be protected, but making exceptions just because a property is non-resident is harsh."

Some lawmakers opposed the government's proposal to gradually phase out "tax benefits upon holding" by keeping the long-term holding special deduction system as it is. Others vented frustration that many constituents are protesting the tax reform plan as a tax hike, and some lawmakers even complained that if the government's bill passes the National Assembly unamended, "it will be a total disaster."

(Camera reporting: Ha Ryung, Yoon Hyung | Video editing: Jeon Min-gyu | Design: Kang Yoon-jung)
※ Please note: This article was translated by AI and may contain errors.