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PPP leader Jang Dong-hyuk holds a press conference at the National Assembly on the 4th regarding the government's 2026 tax reform bill. / Reporter Lee Byung-hwa

On the 4th, the People Power Party criticized the government's real estate tax reform plan as running directly counter to President Lee Jae-myung's campaign promises during the presidential race, calling it a declaration of "dropping a tax bomb."

Floor Leader Jung Jum-sik wrote on Facebook that day, "Presidential candidate Lee Jae-myung pledged to ease regulations on redevelopment and reconstruction, but President Lee Jae-myung has expressed a negative stance toward them," adding, "President Lee's real estate policy is now running in the complete opposite direction from what he promised at the time."

Jung went on to criticize the plan as "the worst kind of tax hike," saying it ignores even the OECD's recommendation that transaction taxes should be lowered if holding taxes are raised, instead strengthening both simultaneously. He said, "A government that deceives the public with a tax bomb will surely be judged by the people."

He added, "Presidential candidate Lee Jae-myung said he would not use taxes to control home prices, and pledged to increase supply rather than suppress demand through price controls via taxation," but "President Lee ultimately chose the tax bomb."

Secretary-General Jung Hee-yong also wrote on Facebook that despite being called a "reform," the plan is full of irresponsible choices that ignore people's livelihoods in favor of filling budget shortfalls by draining the public's pockets, calling it a real estate debate whose conclusion was predetermined — "indiscriminate tax hikes."

The Democratic Party, on the other hand, described the tax reform plan as "tax normalization for growth and people's livelihoods." As the ruling party responsible for the policy, it said it would closely monitor the plan's market impact and carefully examine its policy effectiveness, public acceptance, and institutional predictability during the upcoming National Assembly review process. The party has also signaled plans to hold policy discussion sessions to gauge public sentiment on real estate.

Acting party leader and floor leader Han Byung-do said at a floor strategy meeting at the National Assembly that day, "This tax reform plan is a tax normalization measure that rationally adjusts special provisions that have low effectiveness or are excessively concentrated on a small group."

                                                                                                         Kim Dong-wook