Gov't, ruling party agree to relax tax rule for single-home owners

SEOUL, Aug. 23 (Yonhap) -- The South Korean government and the ruling Democratic Party (DP) have reached a consensus on relaxing a proposed tax revision that could negatively affect single-home owners who do not reside in their properties. This agreement was a key outcome of a high-level policy coordination meeting held on Sunday.

DP senior spokesperson Park Sung-joon stated that the party and government agreed to broadly recognize various inevitable reasons for not living in one's property, addressing concerns about potential "blind spots" in the tax code. The meeting, the first since the recent election of Kim Min-seok as DP leader, also saw agreement to push for a revision allowing local government chiefs to issue construction permits for residential complexes of up to 500 units.

During the meeting at Prime Minister Han Seong-sook's residence, DP leader Kim Min-seok highlighted the need for further deliberation on the tax proposal, which aims to increase housing supply in the greater Seoul area. The government's proposal includes lowering the basic deduction for the comprehensive real estate holding tax from the current 1.2 billion won (US$865,500) to 900 million won.

Presidential chief of staff Kang Hoon-sik emphasized the importance of providing clear signals about housing construction plans to alleviate public anxiety. He also requested that DP local leaders contribute ideas for securing land for immediate housing construction, with assurances that the government and Cheong Wa Dae would actively review them.