The Democratic Party is pushing to ease the tax burden on 'non-resident single homeowners', but there appears to be a difference in temperature between the party and the government. The Democratic Party's real estate policy TF (task force) held a meeting at the National Assembly on the 13th and discussed ways to ease the tax burden on non-resident single homeowners. The TF is reportedly considering a bill that would exempt non-resident single homeowners with homes worth less than 900 million won from paying the comprehensive real estate tax. In addition, it is planning to lower the tax rate for non-resident single homeowners with homes worth between 900 million won and 1.5 billion won. However, the government is cautious about easing the tax burden on non-resident homeowners, as it may lead to an increase in speculative demand. A government official said, "We need to be careful in making decisions about this issue, as it is related to the overall real estate policy." The Democratic Party's move to ease the tax burden on non-resident single homeowners is seen as an attempt to appeal to voters in the suburbs and rural areas. The party's real estate policy TF is led by Rep. Hong Ik-pyo, a three-term lawmaker and a key member of the party's policy leadership. The TF's efforts to ease the tax burden on non-resident single homeowners are expected to face opposition from the government and critics who argue that it would unfairly benefit wealthy homeowners. The issue is likely to become a contentious one in the run-up to the 2024 general election.
The Democratic Party and the government/central government held a high-level inter-party consensus on the real estate tax reform bill, discussing it to refine the proposal, but found differing approaches on key issues. The Democratic Party strongly advocated for extensive relief on the comprehensive real estate tax, including property tax and inheritance tax, for non-resident home owners.
In contrast, the government aimed to shift the reform focus towards "resident-centric" policies. At the high-level inter-party consensus meeting, the main point of contention was the scope of application for the distinction between residence and non-residence for 1st-time home owners. The Democratic Party demanded substantial changes to the reform proposal, emphasizing the need for in-depth deliberation.
Representative Kim Min-seok stated that the party's proposal to exempt basic property tax for non-resident home owners was adjusted from KRW 12 billion to KRW 9 billion, and the ceiling for comprehensive tax relief was raised to 200%. The party also called for a deeper review of the property tax rate's share of market value and the proportion of tax relief for first-time home owners.
The government responded that it would consider public opinion before modifying the reform proposal.
Written by urgent.news from Hankyoreh's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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