Koo Yoon-chul: "Measures for Jeonse and Monthly Rent Focused on Expanding Non-Apartment Supply and Increasing Tax Deductions"

Koo Yoon-chul, Deputy Prime Minister and Minister of Economy and Finance, is attending the plenary meeting of the Committee on Economy and Finance held at the National Assembly in Yeongdeungpo-gu, Seoul on the 29th, responding to lawmakers' questions. Ministry of Economy and Finance

Koo Yoon-chul, Deputy Prime Minister and Minister of Economy and Finance, commented on President Lee Jaemyung’s statement about “tripling the property holding tax” on the 29th, saying, “Please understand this as an example that, since the current holding tax is low, it should be raised somewhat.” Regarding measures to prevent the burden of stronger property taxes from being shifted to tenants in jeonse and monthly rent contracts, he said, “We are working on ways to increase benefits for tenants, such as tax deductions.”

Koo made these remarks in response to lawmakers’ questions during the full session of the National Assembly’s Finance and Economy Committee that day.

When asked about recent indications that a policy of increasing holding taxes conflicts with the president’s campaign promise that “housing prices will not be controlled by taxes,” Koo responded, “The Lee Jaemyung administration does not operate real estate tax policy to control housing prices. It is necessary to ease the burden for people who actually live in their own single home, while increasing the burden for people who own multiple properties that they do not reside in.”

He added, “We will provide benefits for people residing in their single home, but we will not offer financial support or tax incentives for those who purchase multiple homes without residing in them. The purpose is the normalization of rational transactions and the stability of the market.”

When asked whether the government would increase both holding taxes and transaction taxes together, Koo avoided a direct answer, saying, “I cannot make a blanket statement.”

Regarding measures for jeonse and monthly rent, he said, “We are focusing on increasing the supply of non-apartment housing.” He added, “We are considering various ways to provide tax deductions or financial incentives as jeonse and monthly rent prices rise.”

On the recent increase in stock market volatility, Koo commented, “The reason is that polarization has intensified, with two particular stocks—Samsung Electronics and SK hynix—making up as much as 50% of the market. The government is also concerned about the growing volatility and is monitoring it closely.”

He added, “The government is internally considering ways to ensure that the stock market can move forward with reduced volatility and greater stability.”

Koo also signaled the possibility of additional measures for single-stock leveraged products. In response to calls to consider such options as imposing aggregate issuance limits per asset management company, intraday trading restrictions or bans, time-based trade matching, and uniform margin requirements in order to reduce the amplifying effect of single-stock leveraged ETFs on market volatility, he stated, “We will review these suggestions.”  

He also said, “Since we have decided to implement supplementary measures for single-stock leveraged ETFs starting from the 31st, if necessary, we will make further enhancements to operate them in a way that reduces market volatility.”  

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