South Korea's Democratic Party and government plan to submit a real estate tax reform proposal after a presidential forum on July 23, according to policy chief Han Jeong-ae. Speaking to reporters following a party-government consultation on July 13, Han stated the government will include tax reform details in submissions to the National Assembly once the real estate forum concludes. The move responds to rising housing market liquidity and rental costs affecting young homebuyers, with the party requesting expedited customized supply measures from the government.
Presidential Forum Precedes Tax Reform Submission
Han Jeong-ae, the Democratic Party's policy chief, confirmed the president will directly host the real estate forum on July 23. "After the entire real estate-related forum ends on July 23, the government plans to submit to the National Assembly, including content related to tax reform," Han told reporters. She explained that various stakeholders are currently providing input for the forum. Han noted that time will be needed to finalize discussions after the forum concludes before the tax reform proposal is presented. She added that improvements related to supply details and financial measures may be announced together, though she clarified that specific dates were not concretely discussed during the July 13 consultation.
Democratic Party Requests Expedited Housing Supply Measures
When asked whether the ruling party made specific requests to the government regarding real estate tax reform and supply measures, Han stated the party's position that "customized supply measures should proceed quickly at an appropriate time." She pointed to increased market liquidity as a contributing factor to rising rental costs, particularly affecting young people. "We have requested (to the government) that thorough measures be implemented for the portion related to purchasing a first home, as these factors are influencing the surge in rental funds and have a significant impact on the younger generation," Han said.
Future Response Fund Legislation Planned for Next Year Implementation
The July 13 party-government consultation also addressed the government's Future Response Fund and Mega Special Zone special law. Han requested swift investment execution for infrastructure including living conditions and railways to retain talent, and promised active support through rapid enactment of the Mega Special Zone special law. Regarding the Future Response Fund, she stated the legislation will proceed as a government bill. "There is consensus within the government that this should be executed in a forward-looking manner, and (Democratic Party) lawmakers also share this consensus," Han said. She noted that local governments may expect special grants and allocation taxes related to additional tax revenue, the fund's financing source. "Taking these factors into account, we will proceed with in-depth discussions, and once organized, the government proposal will be submitted to the National Assembly after party-government consultation," Han announced. She added that fund establishment is unlikely to happen as quickly as expected, as implementation begins next year, with in-depth discussions anticipated during the second half of the year.
FAQ
What did South Korea's Democratic Party announce on July 13 regarding real estate policy?
The Democratic Party stated that the government will submit a real estate tax reform proposal to the National Assembly after a presidential forum on July 23. Policy chief Han Jeong-ae confirmed the president will directly host the forum, with tax reform details and potential supply and financial measure improvements to be included in the submission.
Why is South Korea planning real estate tax reform?
The reform responds to rising housing market liquidity and rental costs affecting young homebuyers. The Democratic Party requested expedited customized supply measures from the government, citing increased market liquidity's impact on rental fund surges and the need for thorough measures for first-time home purchases by younger generations.
