Chin Sung-joon, a Democratic Party of Korea lawmaker who chairs the National Assembly's Budget and Accounts Committee, predicted that the government's July tax reform package will likely include a hike in property holding taxes.
Chin said on YTN Radio's "Jang Sung-chul's News Myeongdang" on the 30th that there is "a considerable possibility" that property holding tax increases will be included in the July tax reform. His remarks came in response to Deputy Prime Minister and Minister of Economy and Finance Ku Yun-chul signaling willingness to raise holding taxes as a last resort to tame housing prices.
Chin said that President Lee Jae-myung has also expressed his resolve, stating that Lee "declared he would never extend the moratorium on heavy capital gains taxes on real estate" and that "those who trust government policy should not be the ones who suffer losses." Chin added that the president "maintains the position that housing should not be held for speculative purposes, and that those holding unnecessary properties should bear the appropriate burden."
Asked whether the holding tax issue was being pushed to July — after the June 3 local elections — because it would be politically unfavorable, Chin responded, "The Democratic Party does seem to have that concern strongly in mind." He added, "I have argued that the real estate issue needs to be decisively resolved, even for the sake of elections, but the party likely does not want to create additional variables."
Regarding the establishment of a Real Estate Supervisory Agency, which the ruling party, government, and presidential office are jointly pursuing, Chin said progress has been slow due to opposition party resistance. "The current government's plan is to set up the Real Estate Supervisory Agency under the Prime Minister's office, not under the Ministry of Land, Infrastructure and Transport," he explained, adding that "jurisdiction over the agency's establishment bill has been assigned to the National Assembly's Legislation and Judiciary Committee, not the Land and Transport Committee."
"The Legislation and Judiciary Committee is chaired by People Power Party lawmaker Yoon Han-hong, who appears to be negative on this issue," Chin said. "The committee needs to convene quickly and process urgent livelihood bills."