Han Dong-hoon, a candidate for the People Power Party's presidential primary, noted on the 30th that he would expand the basic deductions for dependents of earned income and widen the application of floor area ratio and building coverage ratio regulations to the three districts of Gangnam and Yongsan.
On this day, the candidate announced a pledge regarding 'taxes and real estate policy' that includes these details.
First, he stated that the tax policy would include four key tasks: ▲family-friendly tax reform ▲corporate tax reform ▲nurturing five mega cities through a tax zero fund ▲rational restructuring of the tax system.
The candidate said, "In order to ease the tax burden on working citizens who support their families, we will expand the basic deductions for dependents of earned income and child deductions." He also mentioned plans to ease the requirements for corporate tax credits applicable to parental leave workers and to extend them to shortened working hours for parents.
He emphasized that the corporate tax would be significantly reformed to support corporate growth.
Han Dong-hoon said, "The important issue for enhancing the global competitiveness of our corporations and attracting excellent overseas companies is to reform the progressive structure of corporate taxes," indicating that he intends to change the structure where larger corporations face a dramatically increasing tax burden.
He plans to also ease the differential application of research and development investment credits based on the size of corporations.
In addition, he stated that to support one of his key pledges, 'five mega cities,' a 'tax zero fund' would be introduced in regulatory-free special zones and that significant benefits would be provided for capital gains tax when investing in these zones after selling real estate in the metropolitan area.
He also noted that he would diligently pursue the exemption of acquisition taxes for homeless youths and newlyweds when purchasing dwellings, the restructuring of inheritance and gift taxes, and the expansion of the capital gains tax deduction limit for overseas stock investors to 50 million won.
As for real estate policy, he identified four key tasks: ▲support for first-time home purchases ▲normalization of reconstruction and redevelopment ▲abolition of the comprehensive real estate tax ▲strengthening taxation on speculative real estate transactions by foreigners.
He stated that he would abolish the loan-to-value (LTV) regulations applied to mortgage loans for youths and newlyweds and that during the period of being considered a youth, this benefit would be accessible without restriction.
He clarified that he would expand and apply the easing of floor area ratio and building coverage ratio regulations to include the three districts of Gangnam and Yongsan, which are currently excluded from the existing legislation, and he would push for the abolition of the comprehensive real estate tax.
Han Dong-hoon stated, "The comprehensive real estate tax is a representative ideological tax that taxes real estate not yet sold and imposes tax again when it is sold later, creating double taxation." He emphasized, "If the capital gains tax remains, it is right to abolish the comprehensive real estate tax."
However, he plans to abolish the additional capital gains tax for multiple homeowners outside the metropolitan area and exclude both homes if owned in both the capital and non-capital regions.
The candidate also stated, "To block the speculative housing demand from foreigners, we will strengthen taxes throughout the acquisition, holding, and transfer stages."
During the acquisition stage, he plans to impose a speculation tax and apply higher tax rates proportional to the number of dwellings for multiple homeowners. In the holding stage, a property tax rate of 4%, which is comparable to that of high-end homes or villas, will be applied, and in the transfer stage, even those who own just one dwelling will face increased tax without any special treatment.