Chong Won-o, the Democratic Party of Korea's candidate for Seoul mayor, announced a pledge to reduce property taxes for single-home owners with no income.
On the 13th, Chong held a news conference at the National Assembly's press center in Yeongdeungpo-gu, Seoul, with the 25 district mayoral candidates in the city and announced his pledge. He said, "We will push for a temporary property tax reduction for retired single-home owners with no business or earned income."
He added, "We will pursue a measure to temporarily reduce the increase in property taxes this year caused by higher officially assessed prices." This year's officially assessed prices for multiunit housing in Seoul rose 18.6%.
He continued, "This is to ease the property tax burden on retired people who are not multi-home owners for speculative purposes but are living in and holding on to the one home they have lived in all their lives."
As to whether financial income would be included, he answered, "We will take that into account to some extent and set the criteria."
Those eligible for the property tax reduction announced today are single-home owners who are above a certain age and have no business income or earned income. Regarding the age standard, Chong said, "We will reasonably review it with reference to age 60, the current age threshold for the elderly tax credit under the comprehensive real estate tax."
Under Article 4 of the Act on Restriction on Special Cases Concerning Local Taxation, local governments may temporarily reduce property taxes through a local government ordinance.
Chong and the 25 district mayoral candidates said that, if elected, they plan to revise each district's local government ordinance so that the reduction reflecting this year's increase can be applied to the property taxes levied in September this year. They also said they would review a plan to refund the amounts levied in July after payment.
Chong explained the rationale, saying, "Taxes must be fair, but we also have to look at the realities citizens face."
He added, "What's more, some of these people are excluded from eligibility for high oil price damage support payments solely because they own a home, raising equity concerns."
Chong's camp said, "This property tax reduction pledge aligns with President Lee Jae-myung's recent emphasis that 'active fiscal policy will serve as a springboard for an economic rebound.'"