Park Soo-min: "Taxes Are Not Penalties"... Koo Yoon-chul: "Real Estate Compensation Shifting From Ownership to Residency"

Clash of Tax Philosophies over Capital Gains Reform for Single-Homeowners
Park: "Ownership and Residence Can Differ"
Koo: "Burden Needed on Capital Gains"

Park Soo-min, a member of the People Power Party, and Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul clashed head-on over the direction of real estate tax reform. Assemblyman Park criticized, "The government is using taxes like a penalty," pointing out that, depending on living conditions such as work and education, a person’s owned home and actual place of residence may differ. In contrast, Deputy Prime Minister Koo countered that the government is in the process of changing the compensation system to concentrate benefits on actual residence rather than on property ownership.

During the National Assembly's economic sector interpellation session on September 11, Assemblyman Park criticized the government’s real estate policy, stating, "Excessive punitive regulations and lending restrictions are causing a balloon effect," adding, "Despite this, the government continues to tell itself that it is controlling house prices in Gangnam."

Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol is responding to a question from Park Sumin, a member of the People Power Party, during the economic sector government audit session held at the National Assembly plenary session on the 11th. Photo by Yonhap News Agency

The two sides highlighted their philosophical differences over the plan to reduce capital gains tax benefits for homeowners who do not actually reside in their owned property. Park argued, "As the economy develops, the concept of employment and the forms of jobs become more diverse," and asked, "The house I want to buy and the house I want to live in might be different—why is this being penalized?"

Deputy Prime Minister Koo responded, "This is not about punishment—it's about changing the compensation system," saying, "We intend to shift the incentives to those who actually reside in a property, rather than just own it." He also explained that exceptions to the actual residence requirement would be provided for reasonable reasons, such as work or school.

Assemblyman Park reiterated that the government is ignoring the reality that it is difficult to align ownership and residence, stating, "In reality, it's impossible for the house you own and the house you actually live in to always be the same, but the government insists on telling people to ‘buy’ and ‘live’ in the same place."

Deputy Prime Minister Koo emphasized, "Housing policy should not reward mere ownership," and continued, "By focusing too much on ownership, ownership and residency have become separated." He also stressed the need to normalize taxation, saying, "For capital gains on high-priced homes, it is now necessary for owners to feel the burden."

The two also clashed over the government's plan to cap the maximum long-term ownership special deduction for one-home households’ capital gains tax at 1 billion won beginning in 2029. Assemblyman Park argued, "Taxing individuals who have accumulated assets over a lifetime by owning a home for 30 years simply because of the accrued capital gains is punitive. Is it right to persecute the successful few?"

Deputy Prime Minister Koo countered, "For most people who have actually lived in their one home, taxes will actually decrease," and added, "It is only fair that those with large capital gains pay more taxes; this is what tax normalization means."

Assemblyman Park called for, "Taxes are not penalties. Single-home households should not have to worry about taxes," and urged, "The tax system should be designed in a way that supports people’s life cycle activities."

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