On the 6th, Democratic Party of Korea lawmaker Hwang Hee said, "Overapplying the reconstruction excess profit recapture system (Jaechohwan) or the land transaction permit system (the land transaction permit system) to established cities is an excessive market regulation."
Hwang, who serves as head of the Democratic Party's Seoul chapter local election planning team, held a press briefing at the National Assembly Members' Office Building that day and said, "During reconstruction, there are public contributions, property taxes are paid, and capital gains taxes are paid upon sale," adding, "Even now it is triple taxation, and it is unreasonable to recapture excess profits on top of that."
Hwang went on, "The Democratic Party views dwellings as having the character of a use good for acquiring one's own home, but the exchange good element of using real estate for financial gain also needs to be considered," adding, "If we proceed with an approach of eliminating problems as they arise from time to time without medium- to long-term measures and principles, there will inevitably be continued balloon effects."
Hwang stressed that the government should actively inject fiscal resources into purchasing public land for urban development. He said the government needs to buy public land to prevent "gentrification (a phenomenon in which original residents are pushed out as outsiders move in)" after urban regeneration.
Hwang said, "Sell land in high-density areas and use that asset to purchase low-density areas. Only then can we look for the next opportunity," adding, "Even if not that, public land should be purchased little by little and gradually expanded."
In addition, Hwang proposed ▲ easing property taxes for single-home owners ▲ establishing lending standards based on average real estate prices by region ▲ developing "school-residence complexes" that link schools and apartments ▲ government investment in shared equity to minimize owners' contributions during redevelopment.