As the government is set to announce a tax system overhaul, including real estate taxes, by early next month at the latest, Kim Yong-beom, chief of policy at Cheong Wa Dae, said on the 27th that the administration is reviewing a plan to open an "exit" so that owners of multiple homes can put properties on the market if the holding tax is strengthened. He also said that while loans, cited by Cheong Wa Dae as a driver of rising home prices, will continue to be restricted, "pinpointed escape hatches" are needed for end users.
Kim, the Deputy Minister, appeared on CBS Radio the same day and said, "There have been various opinions on how to strengthen the holding tax and what the threshold is for ultra-high-priced dwellings," adding, "We are building consensus on the threshold for ultra-high-priced dwellings."
Kim, the Deputy Minister, said, "In the case of capital gains tax, constructive ideas included setting a cap on the 'special deduction for long-term holding,' opening an exit so that owners of multiple homes can put properties on the market when the holding tax is strengthened, and easing the tax burden for those who move to the provinces after retirement."
He also said a further forum could be held to review supply measures. Kim, the Deputy Minister, said, "Even the policies already announced take quite a long time from site development," adding, "It seems the president will hold a forum to broadly review ways to expedite all procedures, including administrative steps."
Cheong Wa Dae decided to prepare complementary measures only in limited cases, taking into account criticism that the harms of loan regulations are significant. Ha Jun-kyung, senior secretary for economic growth at Cheong Wa Dae, appeared on SBS Radio the same day and, regarding loan regulations, said, "Everyone says, 'I want to get a lot of loans,' but if we give loans to everyone, home prices will rise again," adding, "You can't drink salt water just because you are thirsty."
However, he said, "Nevertheless, if there are unreasonable parts, of course we should fix them," adding, "As a basic stance, rather than loans that raise demand, let's take another look at loans that activate supply." He continued, "If something had been institutionally guaranteed but suddenly (because of the latest rules) lending is not allowed, or if banks suddenly tighten (loans), we need to create pinpointed escape hatches."