Democratic Party's Seoul Lawmakers: "Protect Single-Homeowners and Genuine Homebuyers"... to Pursue Party-Government Talks

Conflicting views on proposal to raise the basic deduction for the comprehensive real estate tax to KRW 1.4 billion
Further feedback to be sought on reducing the special deduction for long-term ownership
"We will organize tax and housing supply measures and pursue consultations by this weekend"

Democratic Party of Korea lawmakers representing Seoul agreed to consult with the government on property tax reform, focusing on protecting homeowners with one home and genuine homebuyers.

Assemblyman Kim Youngbae, chair of the party's Seoul chapter, told reporters after a meeting of Seoul-area lawmakers at the National Assembly on Thursday afternoon that "there was broad agreement on the need to provide robust protection for lower- and middle-income homeowners with one home and genuine homebuyers."

Rep. Kim Youngbae of the Democratic Party of Korea. Photo by Kim Hyunmin

The lawmakers also agreed that measures were needed to ease the rent and monthly housing costs of genuine homebuyers, including young people and newlyweds. Kim said, "We agreed to organize agenda items related to taxes and housing supply and pursue consultations between the ruling party and the government as much as possible by this weekend."

However, they did not reach a conclusion on a proposal to raise the basic deduction for the comprehensive real estate tax to KRW 1.4 billion based on the officially assessed property value, regardless of whether the owner lives in the property. Lawmakers reportedly held differing views depending on their constituencies. Kim said, "There are some differences in the concerns of each region, so it is difficult to say what has been decided. Some results from existing policies are also beginning to emerge, and we will consider whether easing the rules is necessary if that would better achieve the government's policy objectives."

He also said further feedback was needed on the government's proposal to reduce the special deduction for long-term ownership. Kim said, "There are differing opinions among lawmakers, so this is an area where further feedback is needed."

Earlier, the government announced a tax reform plan to raise the basic deduction for the comprehensive real estate tax from KRW 1.2 billion to KRW 1.4 billion for owner-occupiers with one home, and lower it from KRW 1.2 billion to KRW 900 million for non-owner-occupiers with one home. However, after lawmakers representing Seoul, among others, voiced opposition, the government decided to keep the basic deduction for non-owner-occupiers with one home at the current level of KRW 1.2 billion.

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