Central Election Broadcasting Debate Commission hosts policy debate
Ruling, opposition parties clash over real estate tax and supply measures
The ruling and opposition parties continued a fierce exchange over real estate supply measures and tax policy.
At a policy debate hosted by the Central Election Broadcasting Debate Commission at the KBS annex in Yeouido, Seoul, on Wednesday, the Democratic Party of Korea called for public-led housing supply, while the People Power Party proposed private-sector-driven high-density development in transit-oriented areas as the solution.
Min Byoung-doo, first vice chair of the Democratic Party of Korea's Policy Committee, said, "The private sector supplied an average of about 190,000 housing units a year over the past 10 years. In 2021, both public and private supply exceeded the target, but it plunged sharply from 2022 to 2024." He added, "This is the period when the supply cliff is showing up as a sharp drop in move-in volume."
He added, "The public sector must step in as a catalyst while also drawing in private-sector vitality," and said, "Discussions on easing floor area ratios for private redevelopment projects are moving forward rapidly. The People Power Party should not dismiss this as watered-down."
Kim Eun-hye, chair of the People Power Party's National Normalization Policy Coordination Committee, said, "The private sector should lead large-scale housing supply in city centers, while the public sector fills in where the market falls short." She added, "A healthy division of roles is needed. The more the government intervenes, the more it damages the market."
She added, "We proposed giving incentives on floor area ratios for private high-density development around transit hubs alongside the public sector, but for two years the bill has failed to clear the Land, Infrastructure and Transport Committee's legislation subcommittee, with only the public-sector portion pushed through." She also turned on the Democratic Party, saying, "Open it up for the private sector too. Why won't you let people build homes?"
Cha Kyu-geun, a supreme council member of the Rebuilding Korea Party, said, "Would it not make sense for the entire National Assembly to relocate to Sejong?" He said building high-quality public rental housing on the Assembly's large site to supply homes for young people and those without homes would go a long way toward stabilizing housing prices in the greater Seoul area.
The parties also showed clear differences over the government's real estate tax policy. Kim said, "The government must resist the temptation to control the market — that is what caused the trouble," adding, "Real estate policy that brands parents' wish to give their children a better place to live as speculation, and that plunders the public, must be scrapped."
Min pushed back, saying, "In fact, those whose tax burden rose this time were only a small group with very high-priced homes, while those below that level are seeing their comprehensive real estate tax fall." He added, "This is not a tax bomb, but a normalization of taxes in line with the ability to pay."
Cha said, "We should set a target effective tax rate for property holding taxes and enact and publicize a roadmap to strengthen it gradually over 10 years," while Yoon Jong-oh, floor leader of the Progressive Party, said, "The tax issue should be approached from the standpoint of tax justice."
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