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Han Duck-soo, deputy prime minister for finance and economy
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Party wants to change property taxes; feds say no
The ruling Uri Party, which had hoped to revise parts of the national property tax policy, has been stymied by the administration, which twice announced its opposition to making any such changes. The Uri Party wants to reduce acquisition and registration taxes for real estate owners as well as reduce both property and comprehensive real estate taxes paid by persons on their actual physical residences. However, a government official who asked to remain unnamed said Tuesday that any changes would "destroy confidence in policy" and "make the market unable to accept any policies in the future. Any such reductions could hurt local government finances and should not be decided upon so easily," he added.On Monday, deputy prime minister for finance and economy Han Duck-soo told officials at his ministry that there should be no changes. "Stable housing prices are essential for economic stability," said Deputy Prime Minister Han. There would be negative effects over the long term if the government were to "manage the economy through real estate," he said. Minister of construction and transportation Chu Byung-jik has also spoken out against making any changes in policy regarding the housing market. It is believed that members of the executive branch are taking issue with the ruling party’s stance because the government is confident the market is just beginning to stabilize, and that openly considering any adjustments would be harmful.
