Democratic Party leader Kim Min-seok called on the 23rd for the government to broaden the range of acceptable reasons why an owner of a single home may not live in it, in remarks on the government's property tax overhaul.
Kim made the comments at the 10th high-level party-government meeting held at the prime minister's official residence in Samcheong-dong, Jongno District, Seoul. "While I agree in principle with the government and the president's stance on expanding property supply and the direction of the tax overhaul, I would like to offer a few suggestions for improvement," Kim said. The meeting was attended by ruling party leaders including Kim and Democratic Party floor leader Han Byung-do, along with Prime Minister Han Seong-sook and Presidential Chief of Staff Kang Hoon-sik. The main agenda items included the government's tax overhaul, plans to expand housing supply in the Seoul metropolitan area, and how to advance related legislation.
"The property tax overhaul and the plan to expand housing supply in the metropolitan area are matters of very high public interest," Kim said. "For owners of a single home who do not live in it, the various unavoidable reasons for non-residence should be broadly recognized, and there should be no blind spots."
On the comprehensive real estate tax overhaul in particular, Kim said, "Even if the current system is maintained, there is an aspect in which the tax burden on non-residents naturally rises as official property values increase." He urged caution, saying, "The tax changes that would adjust the basic deduction for owners of a single home who do not live in it from 1.2 billion won to 900 million won, and raise the cap on the comprehensive real estate tax burden to 200%, require thorough deliberation."
Kim also noted, "Converting the long-term holding special deduction on capital gains tax into a long-term residence deduction has a positive direction as a housing market policy centered on actual residence, but we must carefully examine whether the ripple effects of the system change could have a negative impact on the jeonse and monthly rent market."
Kim stressed that the party would actively support the government's policy to expand housing supply. "The key to housing stability is, above all, expanding supply," he said. "We must mobilize every possible means and method to secure land across the board and expand property supply."
He added, "The party will also fulfill its legislative responsibility as the governing party by shortening approval procedures and easing various regulations to expand property supply."
Kim also signaled his intention to further strengthen relations among the party, government and presidential office. "Party-presidential office relations and party-government relations must become closer," he said. "In accordance with the constitution, the lessons of political history, and the Democratic Party's charter and bylaws, we will deepen and strengthen relations among the party, government and presidential office, and if necessary, improve the system to make them even closer."
