Minister Kim Yun-duk of the Ministry of Land, Infrastructure and Transport said the government will increase supply while phasing in measures to address the issue of nonresident single-home owners converting to actual occupancy that arose after the tax reform plan was announced.
The Minister appeared before the Land Infrastructure and Transport Committee on the 11th and, addressing concerns that nonresident single-home owners converting to actual occupancy would force tenants to vacate and could pass tax increases on to monthly or lump-sum rents, said, "I think it is better to work to further reduce market shocks through phased implementation in carrying out various tax issues."
He added, "To mitigate market shocks for policies that require conversion to actual occupancy, there will be no change until the end of next year for now," and said, "Rather than immediate implementation, we will implement in stages so there is a certain variance, and during that variance period we will increase supply."
On a question about the policy goal of the tax reform, he explained, "I understand the goal is to form an actual-occupancy-centered dwellings market and normalize real estate taxes so that tax equity is enhanced, and to establish a sustainable and rational real estate tax system."
On the overhaul of the long-term holding special deduction in this tax reform plan, the Minister said, "It is about changing the system so that a clear level of tax can be paid on excessive gains," and added, "From the standpoint of establishing taxes justice, I think it is a very sound policy."
Addressing the direction for responding to the dwellings supply issue in Seoul and the greater capital area, the Minister said, "The most important thing is, of course, to build a lot." He explained, "For private redevelopment projects, we have measures to shorten permitting periods and speed them up as they are, and for the second- and third-phase new towns, we have policies to accelerate the schedule so they can break ground quickly."
He continued, "We are considering lifting greenbelt restrictions if necessary so we can supply many dwellings in the capital region," and said, "In another aspect, not limiting ourselves to apartments, since there are currently many issues with lump-sum and monthly rents, we plan to proceed with a very important policy alternative of activating non-apartment housing."