Seoul, August 23: The South Korean government and the ruling Democratic Party (DP) reached an agreement on Sunday regarding the need for tax relief in proposed changes. A party spokesperson indicated that these changes could adversely affect individuals who own a home but do not reside in it.
This consensus emerged during a high-level policy coordination meeting, the first since former Prime Minister Kim Min-seok was elected as the DP leader last Monday.
Following the meeting, DP senior spokesperson Park Sung-jun addressed the press at the National Assembly, stating, “The party and government have agreed on several points, including expanding residency recognition for those unable to live in their properties due to various circumstances.”
According to reports from the Yonhap news agency, Park mentioned that both parties also agreed to amend the law to empower local government heads to issue construction permits for residential complexes of up to 500 units.
During the meeting held at Prime Minister Han Seung-soo’s official residence, the DP leader discussed ongoing disputes regarding increasing housing supply in the Greater Seoul area and related tax regulations. He emphasized the need for further discussions on proposals to raise taxes on single-home owners who do not reside in their properties.
Under this proposal, the government plans to reduce the basic deduction for the comprehensive real estate holding tax from the current 1.2 billion won (approximately 865,500 USD) to 900 million won.
Kim stated, “We need to comprehensively understand the various reasons behind not residing in properties and address the shortcomings.”
The President’s Chief of Staff, Kang Hoon-sik, highlighted the importance of providing clear signals to alleviate public concerns regarding housing supply, such as when, where, and how many units will be constructed.
He urged local party leaders to utilize their knowledge of their communities to suggest immediate ways to acquire land for housing construction. He promised that the government and Cheong Wa Dae (the presidential office) would actively consider their proposals.
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