The National Assembly's Finance, Economy and Planning Committee held a plenary session Wednesday, receiving work reports from the Ministry of Economy and Finance and the Ministry of Planning and Budget. The opposition trained its fire on the government's real estate tax and housing supply policies, while the government reaffirmed its plan to press ahead with property tax reform, including strengthening the holding tax.
Rep. Bae Jun-young of the People Power Party, elected that day as the committee's opposition floor manager, said "taxing some people into submission will not give the homeless a home, nor will it resolve the jeonse shortage or stabilize jeonse and monthly rent prices." He added that President Lee Jae-myung's pledge to scout Greater Seoul sites by helicopter and the land minister's stated desire to lift greenbelt restrictions amounted to an admission that the government had no credible housing supply plan.
Bae also addressed the Bank of Korea, saying it should "think hard about whether raising interest rates is the right answer when household debt is at a record high." He urged the Ministry of Economy and Finance to use any record surplus tax revenue to pay down national debt and ease the burden on future generations rather than spending it freely or stockpiling it in funds, and to route it through the general account for full National Assembly scrutiny. He said the committee should focus on tackling high inflation, financial crisis risks and youth unemployment.
The government is set to unveil a real estate tax reform package aimed at strengthening the holding tax. Deputy Prime Minister Koo Yun-cheol said in his work report Wednesday that the 2026 tax reform plan, due to be announced next week, would be drawn up giving equal weight to boosting economic vitality, tax equity and a sustainable fiscal base.
The Ministry of Economy and Finance also said it would prepare supplementary measures by December to minimize public inconvenience related to the suspension of the capital gains tax surcharge on multi-home owners. The government had previously decided to apply the surcharge suspension to land transaction permit applications filed through May 9, while also enforcing an owner-occupancy requirement of up to two years under the land transaction permit system.
The ministry said it would gather public input to develop rational improvements to real estate transaction taxes and holding taxes, and would pursue institutional reforms through the ministerial meetings on housing supply promotion and real estate policy to build a housing market centered on genuine end-users — expanding supply and managing demand.
On revitalizing the domestic stock market, the ministry said it would strengthen round-the-clock monitoring in line with the 24-hour foreign exchange market opening that took effect July 6, and work to establish sound and transparent trading order. It also announced plans to create a youth-tailored "productive finance ISA" next year, expanding tax exemptions and contribution limits to encourage long-term investment in domestic shares.
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