Kim Min-seok, leader of the Democratic Party of Korea, at the first high-level party-government consultative meeting since taking office on the 23rd, emphasized a careful review of the government's real estate tax overhaul plan. In particular, he said "in-depth deliberation is needed" not only on broadly recognizing reasons for nonresidence for single-home nonresidents, but also on lowering the comprehensive real estate tax basic deduction to 900 million won from 1.2 billion won and expanding the tax burden cap to 200%.
At the high-level party-government consultative meeting held at the prime minister's official residence on the morning of the 23rd, Kim said, "For single-home nonresidents, we must broadly recognize the various unavoidable reasons for nonresidence in reality, while eliminating blind spots."
He added, "Even if we maintain the current system for the comprehensive real estate tax, there is a side in which nonresidents' tax burden naturally increases due to rises in the publicly notified price, so I believe in-depth deliberation is needed on a tax overhaul that would adjust the comprehensive real estate tax basic deduction for single-home nonresidents to 900 million won from 1.2 billion won and raise the cap on the comprehensive real estate tax burden to 200%."
The government's tax overhaul plan includes lowering the comprehensive real estate tax basic deduction for single-home nonresidents to 900 million won from the current 1.2 billion won, and raising the tax burden cap to 200% from 150%. Reasons for nonresidence will be limited to schooling, job transfer, and caring for parents, and a maximum of three years will be recognized as a residence period.
Kim also said a careful review is needed on the capital gains tax overhaul. He said, "Converting the special deduction for long-term holding into a long-term residence income deduction has positives in the direction of a real-residence-centered housing market policy, but we must closely examine whether the chain reaction of the system overhaul will have negative spillover effects on the jeonse and monthly rent market."
As this was the first high-level party-government consultative meeting since Kim took office, the need for close cooperation among the party, government, and presidential office was also emphasized. Kim stressed, "The party–presidential office relationship and the party–government relationship must become even closer." Prime Minister Han Seong-sook also said, "We bear a heavy responsibility to deliver tangible results in people's livelihoods and reform," adding, "We will work to ensure the party, government, and presidential office craft solutions." Presidential chief of staff Kang Hoon-sik likewise said, "Going forward, the party, government, and presidential office will form a solid one-team and communicate closely."
Meanwhile, through the consultation that day, the party, government, and presidential office were also set to review not only the tax overhaul plan but measures for the swift implementation of housing supply plans in the greater Seoul area and the direction for handling key livelihood-related bills.