Mixed Reactions to the Tax Reform Within the Ruling Party

The day after the government announced its tax reform plan aimed at increasing the tax burden on ultraexpensive, nonresident singlehomeowners, both relief and concern emerged within the Democratic Party of Korea. The party leadership praised the measure as tax normalization, but some lawmakers said the tax hike was not as large as expected, while also noting that the overall impact on the real estate market should be monitored further. Lawmakers from constituencies in Seoul’s Han River belt region offered a different assessment, saying the burden of the comprehensive real estate holding tax may not be as heavy as expected. On the other hand, other lawmakers said opinions were split over the possibility that housing prices in some areas could rise further and whether listings would come onto the market. Criticism also arose that measures for rent and lease support are insufficient. The party plans to begin fullscale discussions on the government proposal as early as this month, and lawmakers from Seoul constituencies and city council members have decided to hold a briefing on real estate policy response on the 6th. There is also talk that the government proposal could be revised during the discussion process.