S. Korea mulls alleviating tax burden of mid-low-priced single-house owners

Aug 11, 2020, 09:26 am

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President Moon Jae-in chairs his weekly meeting with top aides at Cheong Wa Dae on August 10, 2020./ Source: Cheong Wa Dae

AsiaToday reporter Lee Jang-won

President Moon Jae-in said Monday that the government will consider installing a separate real estate market supervisory body in order to improve the effectiveness of government measures. The president also proposed a review of ways to alleviate the tax burden of low- to mid-priced single-house owners. Moon stressed that he would make public rental housing into ‘homes that everyone wants to live in,’ and that he would reduce the burden of first-time homebuyers as much as possible.

“The housing issue has become the foremost pending policy task for the people,” Moon said during his weekly meeting with top aides at Cheong Wa Dae. His remark is seen as reiterating his resolve to stabilize the real estate market amid his falling approval and mounting public opposition over the government’s additional real estate measures on August 4.

“The government will responsibly go ahead with the realization of residential justice,” Moon said. “Our firm principle is that we will certainly protect actual demanders while eradicating real estate speculators,” he said. The president described the most recent series of measures as a “comprehensive version of all housing policies.”

He also stressed that houses should be an object for “welfare,” not speculative investment. Regarding the government’s public housing policy, he said, “We will expand the overall supply volume by providing high-quality permanent rental housing for not only lower-income group but also middle-class.”

In addition, Moon vowed to consider setting up a watchdog agency, if needed, to make sure that existing policy steps to curb home price hikes work properly. His remark indicates that he would install a separate body that comprehensively performs the real estate supervisory function that is currently in charge of several agencies, such as the Ministry of Land, Infrastructure and Transport, the National Tax Service, the Financial Supervisory Service, and the Financial Services Commission. The new agency is expected to be in charge of monitoring the market, detecting abnormal transactions, and investigating illegal activities such as tax evasion and violation of loan regulations.

Moon explained that the effects of government measures are gradually emerging and are expected to accelerate.

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