Democratic Party of Korea lawmakers representing Seoul constituencies said Thursday they view the government's proposed real estate tax overhaul as grounded in "the basic principles of tax rationalization and fair taxation," but pledged to closely monitor its market impact. With public sentiment in Seoul souring over tightened taxation on non-resident single-homeowners and rising anxiety around jeonse and monthly rent, the party's Seoul chapter agreed to establish a standing body to continue discussions.
Seoul-based Democratic Party lawmakers and Seoul Metropolitan Council members convened a forum at the National Assembly on Thursday to discuss real estate taxation, housing supply measures and responses to Seoul Mayor Oh Se-hoon's city administration. Attendees included Reps. Han Jeong-ae, Jin Seong-jun, Nam In-soon, Oh Gi-hyeong, Kim Young-bae, Kim Nam-geun, Choi Gi-sang, Chae Hyeon-il and Lee Yong-seon, along with Seoul council members. A number of lawmakers whose constituencies fall along the Han River belt — an area particularly sensitive to the tax changes — did not attend.
Kim Young-bae told reporters after the forum that participants had flagged the non-resident single-homeowner provision as a major concern. "There were many questions raised about non-resident single-homeowners under the tax reform proposal, so we agreed to focus our attention and monitoring closely on that part," he said. "We also decided to closely monitor housing units lost to redevelopment and reconstruction, and the jeonse and monthly rent problems that follow."
On housing supply, Kim sharpened his criticism of Mayor Oh. "Seoul city is one of the most important pillars of supply, yet the mayor is using housing supply only as a political agenda item while failing to take meaningful action on actual delivery," he said. "We made clear that he is in fact deepening the supply cliff for ordinary people, the middle class and especially the younger generation, and we agreed to demand alternatives." Kim, who is running in the Seoul chapter chairmanship election on Aug. 16, also announced plans to establish a "special task force on the Oh Se-hoon city administration" after the election.
Rep. Oh Gi-hyeong said the tax overhaul "stems from the need to rationalize real estate taxation and ensure fair taxation." He added that while participants broadly found the capital gains tax changes acceptable, no detailed debate had taken place. "We are still in the process of hearing various views on the comprehensive real estate tax as well," he said, offering little further detail.
Some participants raised suggestions for supplementing the non-resident single-homeowner tax provisions. Oh said attendees proposed making the definition of actual residency more flexible and applying the new rules in phases. The underlying concern was that non-resident single-homeowners who moved away for work or study should not automatically be treated as speculative holders and subjected to unilateral taxation — and that the party needed to hear what the market was saying.
Participants, however, drew a line against characterizing the meeting as an emergency response aimed at revising the government's tax proposal. Rep. Kim Nam-geun said some media reports had portrayed the gathering as Seoul lawmakers holding a large meeting to push back against the government's announced tax overhaul, but that was not the case. "This meeting was planned from the start," he said. "Its purpose is to establish a formal body under the Seoul chapter to monitor and analyze city administration and develop reform alternatives."
Asked why attendance from Han River belt lawmakers was relatively thin, Kim Nam-geun said some who could not attend had shared their views individually. Kim Young-bae added that once the Seoul chapter's response body is formed, it will coordinate with the central party where needed and submit the chapter's positions where appropriate.
The Democratic Party plans to hold the forum on a regular basis. A follow-up session focused on housing supply is scheduled at the Seoul Metropolitan Council on Aug. 13.
thanks@heraldcorp.com
