Opposition Launches Sharp Criticism of Lee Administration's Real Estate Policy: "54% of Public Concerned About Tax Reform"

Only 19% of Seoul Housing Supply Target Achieved
Concerns Raised Over Property Rights Infringement Due to Tax Reform
Jang: "If This Administration Insists on a Path to Hell, It Must Be Brought Down"

On the afternoon of August 7, President Lee Jaemyung presided over the second closed-door meeting to review real estate policy, while from the morning the opposition parties voiced sharp criticism of government policy. They pointed out the problems with the recently introduced real estate tax reforms and sluggish housing supply, and also discussed amendments to the Income Tax Act as a way to prevent a sharp rise in the tax burden.

"52% Have Negative Assessment of Lee Administration's Real Estate Policy"

On the morning of August 7, the People Power Party held a plenary meeting of the Special Committee on Normalization of Real Estate Policy at the National Assembly. Jang Donghyuk, chair of the committee, stated, “Our party's Yeouido Institute (think tank) conducted an emergency public opinion poll on the Lee Jaemyung administration's real estate policy. When asked whether the real estate tax reform plan would help stabilize housing prices, 54% of respondents said it would not help. Only 34% answered that it would be helpful." He also explained, “In general, the negative assessment of the Lee administration’s real estate policy stood at 52%, while only 35% viewed it positively.”

Jang Donghyuk, leader of the People Power Party, is speaking at the full meeting of the Special Committee on Real Estate Policy Normalization held at the National Assembly on the 7th.

Jang continued, “Today, President Lee is again presiding over a real estate policy meeting. They say supply measures are being discussed, but there will not be many people who are hopeful.” He added, “What people’s livelihoods need now is not more regulations or tax hikes, but supply measures and a real normalization of the real estate market.” He also cautioned, “If the administration insists on staying the course toward a ‘real estate hell,’ the public will have no choice but to oust it as soon as possible.”

Chung Heeyong, Secretary-General of the People Power Party, stated at the meeting, “There is now talk that elderly, single-home owners who have lived in the same home for a long time are the biggest victims of this tax reform. Meanwhile, tenants say they fear calls from landlords who announce that they intend to move in themselves.” He added, “Even though a second policy review meeting is being held under the President's direction today, unless the government changes its basic policy stance, there’s little hope for any meaningful solutions.”

Bae Junyoung, a People Power Party lawmaker appointed as a special committee member that day, appeared on CBS’s “Park Sungtae’s News Show” in the morning and argued that the real estate tax reform is resulting in issues such as the passing on of tax burdens to renters. He said, “Frankly, it wouldn’t be an exaggeration to say that the government has no measures related to monthly/lease rent at all.” He also raised concerns about government supply policy, urging, “There needs to be improvement measures—whether that’s increasing supply through reconstruction and redevelopment, or by expanding loans to build more homes.”

Yoo Euidong, chair of the National Assembly Land, Infrastructure, and Transport Committee and member of the People Power Party, stated on MBC’s “Kim Jongbae’s Focus” on the same day, “The government is focusing solely on taxation and loans,” and pointed out, “The central issue in housing policy should be how stably citizens’ housing costs can be maintained over time so that they are sustainable.” He continued, “It is concerning to see authorities talking as if all (real estate) problems can be solved through short-term, symptomatic measures.”

"Government Supply at Only 19% of Target... Tax System Violates Constitutional Property Rights"

Other People Power Party lawmakers also continued to highlight problems with sluggish supply and tax reforms. Lawmaker Ahn Cheolsoo stated on his social networking site that day, “In September last year, the Lee Jaemyung administration confidently claimed it would break ground on 68,000 housing units in Seoul this year.” He pointed out, “But in the first half, ground actually broke for just 13,121 units, only 19% of the target.” He added, “If this were a company, it would be in danger of bankruptcy for underperforming,” and asserted, “That’s exactly where the Lee administration’s supply performance stands.”

The People Power Party held a plenary meeting of the Special Committee on Normalization of Real Estate Policy at the National Assembly on the 7th.

Lawmaker Yoon Sanghyun criticized the government and ruling party for reviewing a supply plan that would use a portion of the National Pension Fund as a resource for public housing projects. He said, “Amid repeated real estate policy changes and greater tax burdens, public anxiety about the future is rising. Even people’s retirement funds should no longer be touched. The National Pension Fund is not a policy bank for the government.” He urged the administration to “immediately cease attempts to use pension resources for public housing policy.”

Go Dongjin, a lawmaker from the Gangnam-gu district, which would be strongly affected by the tax reform, said, “While the state has the power to levy taxes, if tax burdens are excessively focused on specific regions or demographics to the point that even owning property becomes difficult or people are compelled to sell, then this is a serious infringement of the constitutionally guaranteed property rights of individuals.” He also warned that the current tax reform “will end up triggering a balloon effect, causing various side effects.”

Lawmaker Na Kyungwon announced she would soon sponsor a partial amendment to the Income Tax Act to prevent a sharp rise in tax burdens driven by the tax reform. The proposed amendment will include special provisions and transition measures for long-term single-home owners forced by circumstances to have shorter actual residency periods (using a deemed acquisition date system). Na emphasized, “We must protect the legitimate trust of the people who have faithfully held onto their homes under the national system.”

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