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 Sumin, a member of the People Power Party, and Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol clashed head-on over the direction of real estate tax reform. Assemblywoman Park argued that, due to living conditions such as work and education, the house one owns and the actual place of residence may differ, criticizing, "The government is using taxes like penalties." In contrast, Deputy Prime Minister Koo countered that the government is in the process of changing the compensation system to focus benefits on actual residence rather than homeownership.

During the government audit of the economic sector at the National Assembly on the 11th, Assemblywoman Park criticized the government's real estate policy, stating, "Excessive punitive regulations and loan restrictions are causing a balloon effect," and added, "Yet the government is self-congratulating, claiming it is controlling housing 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 also revealed their philosophical differences on taxation regarding the plan to reduce capital gains tax benefits when homeowners do not actually reside in their single property. Assemblywoman Park pointed out, "As the economy develops, the concepts of work and types of jobs become more diverse," and argued, "The house I want to buy and the house I want to live in can be different, so why penalize that?"

To this, Deputy Prime Minister Koo responded, "It's not about penalizing, but about changing the compensation system," adding, "The goal is to provide incentives for actual residence, not merely ownership." He also explained that the government plans to offer exceptions to the actual residence requirement in reasonable cases, such as for work relocation or children's schooling.

Assemblywoman Park repeatedly pointed out that the government is ignoring the reality that it is difficult to align homeownership and residence. She criticized, "The reality is that the house you own and the house you live in cannot always be the same, yet the government is telling people to both 'buy' and 'live' in the same place."

Deputy Prime Minister Koo stated, "Housing policy should not incentivize ownership," adding, "If we keep focusing on ownership, residential use and ownership become separated." He also emphasized the need to normalize taxation, saying, "Now it's time for people to feel the burden of capital gains on high-priced homes."

Both sides also clashed over the government's plan to limit the maximum long-term capital gains tax deduction for single-home households to 1 billion won starting in 2029. Assemblywoman Park argued, "Imposing taxes on the capital gains accumulated over 30 years for someone who has owned a single property for a lifetime amounts to punishment," questioning, "Is it right for a successful minority to be persecuted just because they succeeded?"

Deputy Prime Minister Koo rebutted, "Most citizens who actually reside in their only home will actually see their taxes decrease," and insisted, "For those with high capital gains, paying more taxes is proper tax normalization."

Assemblywoman Park further asserted, "Taxes are not penalties. Single-home households should not have to worry about taxes," urging, "The taxation system should be designed to support the various life stages of the people."

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