PPP criticizes government tax revisions for increasing property owner burden

SEOUL, Aug. 4 (Yonhap) -- South Korea's main opposition People Power Party (PPP) on Tuesday strongly criticized the government's proposed tax code revisions, asserting that the Lee Jae Myung administration is increasing the tax burden on homeowners.

Rep. Jung Hee-yong, the PPP's secretary-general, stated in a Facebook post that the revisions, despite being labeled as such, are "irresponsible measures that seek to pick the pockets of citizens to make up for the lack of budget and neglect people's livelihoods."

PPP floor leader Jeong Jeom-sig accused President Lee of contradicting his campaign promises against using taxes to curb housing prices. Jeong described the proposal as the "worst tax hike that raises both property holding and transaction taxes at the same time," noting it ignores OECD recommendations to lower transaction taxes if property taxes are raised.

Jeong warned that the additional tax burden would ultimately be passed on to tenants in the form of higher monthly rents and "jeonse," a South Korean rental system involving a large lump-sum deposit. He added that Lee's real estate policies as president are contrary to his campaign pledges.

Rep. Choi Eun-seok, the PPP's senior floor spokesperson, labeled the current administration an "amateur government" that "pressed the 'button for a nuclear bomb'" with its housing policies. Choi recalled President Lee's earlier comparison of real estate taxes to a "nuclear bomb" and called it "absolute bluff."

The PPP urged Lee to acknowledge the failure of his housing policies and issue a public apology.

The government's proposal aims to implement a more "reasonable" tax system for the property market amidst soaring housing prices. Key changes include restructuring the comprehensive real estate holding tax to be based on the total value of homes owned, rather than the number of properties. The government also plans to raise tax exemptions for single-home owners who reside in their properties.