Jang Donghyuk: "Easing Regional Real Estate DSR Regulations... Increasing Loan Limits and Expanding Opportunities for Genuine Homebuyers"

People Power Party Announces Regional and Livelihood Pledges
Special Act to Support SME Business Succession
Road Occupancy Fee Reductions for Small Business Owners

The People Power Party has unveiled a series of regional and livelihood pledges ahead of the 9th nationwide local elections, scheduled for June 3. The pledges include easing the Total Debt Service Ratio (DSR) regulations for real estate in non-metropolitan areas and introducing a Korean version of the Inflation Reduction Act (IRA). Jang Donghyuk, leader of the People Power Party, stated, "Every vote cast for the People Power Party will be the most certain investment in revitalizing the regional economy and improving people's lives."

Jang Donghyuk, leader of the People Power Party, is announcing the regional economy and livelihood pledges under the slogan 'Time for Regional Economy and Livelihood to Rise!' at the National Assembly on the 29th.

On the 29th, at the National Assembly in Yeouido, Seoul, Jang Donghyuk announced four major pledges under the theme "Time for Regional Economy and Livelihood to Rise!" Specifically, the pledges are: ▲ Addressing the polarization between the housing markets in the Seoul metropolitan area and the regions ▲ Introducing a domestic production promotion tax system (Korean-style IRA) ▲ Establishing a safety net for business succession in small and medium-sized enterprises (SMEs) ▲ Reducing road occupancy fees to ease the burden on SMEs and small business owners.

Jang Donghyuk said, "We will relax real estate regulations in the regions and provide greater benefits to those purchasing homes in non-metropolitan areas." He added, "Applying the same DSR regulations as the Seoul metropolitan area creates reverse discrimination against regional areas. We will gradually ease the DSR regulations for real estate in non-metropolitan areas, increase loan limits, and expand opportunities for genuine homebuyers." He also stated, "For unsold or aging homes in regional areas, acquisition tax will be reduced by up to 75%."

Jang Donghyuk also mentioned plans to expand the second home tax benefit policy, which reduces the tax burden for those purchasing additional homes in depopulated areas, to include relevant areas within regional metropolitan cities. He explained, "Even if a property is located within a metropolitan city administratively, if it is in a depopulated or population-decline concern area, we will legally ensure that the single-home special provision applies." He also said, "We will raise the publicly announced price threshold for homes eligible for this special provision from 400 million won to 600 million won."

Regarding the implementation of the Korean-style IRA, Jang Donghyuk described it as "a market-friendly incentive system that protects the domestic production base through new forms of tax support." He continued, "We will provide direct compensation to companies based on their performance in production and sales, dramatically increasing domestic production." He also pledged to "include all industries highly vulnerable to manufacturing hollowing-out due to factors such as national strategic technologies and high tariffs as eligible for support."

The People Power Party will also push to enact a tentatively named "Special Act on SME Succession." The core of this law is to provide institutional support for business succession in SMEs where the owner is over 60 and the company has been operating for more than 10 years. Jang Donghyuk said, "We will broaden the existing paradigm from family business succession to business succession in general, providing broad support for third-party succession and merger and acquisition (M&A)-type succession." He further stated that they would establish the basis for reducing transfer and acquisition taxes and simplify the M&A succession process.

The party also plans to reduce the burden of road occupancy fees paid annually by SMEs and small business owners to local governments. Jang Donghyuk noted, "As officially assessed land values increase, so does the burden of road occupancy fees." He said, "We will pursue differentiated reductions in road occupancy fees by considering the proportion of non-tax revenue for each local government." He also added, "For items that can be addressed through amendments to local ordinances, we will begin implementation in areas where People Power Party mayors are elected, while also pushing for revisions to the Road Act and the Value-Added Tax Act."

Jang Donghyuk emphasized, "We will revive the Korean economy and people's livelihoods with policies that open doors rather than block them, and that create opportunities rather than impose penalties." He concluded, "We will enable businesses nationwide to thrive with tailored support for each region and inject new vitality into the regional economy so that people's lives can improve."

This content was produced with the assistance of AI translation services.