South Korea Reviews Property Holding, Transaction Taxes; Lee to Chair July 23 Housing Debate

South Korea's government is reviewing ways to revamp the country's real estate tax system, including property holding and transaction taxes. President Lee Jae-myung will chair a public debate on July 23 on the broader housing policy framework, including supply, finance and taxation.

Kim Yong-beom, presidential chief of staff for policy, said at a briefing at the presidential office on July 10 that the government is examining "reasonable improvements" to the overall tax system, including holding and transaction taxes, based on policy research and overseas cases.

Lee will lead a public debate on July 23 covering the full range of housing policy, including supply, finance and taxation. Before that, the government will hold sector-specific public forums from July 14 to July 16 under the Ministry of Land, Infrastructure and Transport, the Financial Services Commission and the Ministry of Strategy and Finance. The July 14 session will focus on supply, the July 15 session on finance and the July 16 session on taxation. The government plans to gather views from experts and the public before discussing the overall direction of housing policy at the presidential debate.

Public concern over the real estate market has been growing, Kim said, calling housing an issue directly tied to people's lives.

He added that the burden and anxiety tied to home prices, jeonse and monthly rents, loans and home purchases are hardships many people face in daily life. The government is taking current market conditions seriously.

The government said it would stick to its principles of expanding supply and stabilizing the market. Supply plans are moving ahead without disruption, Kim said. He added that authorities are also taking market-stabilization steps where needed to address overheating concerns in some areas, including designating parts of Dongtan, Giheung and Guri as land transaction permit zones.

Discussion of tax changes is also set to intensify. Because the government referred to both holding and transaction taxes, the agenda could include most major property-related levies, including the comprehensive real estate tax, property tax, acquisition tax and capital gains tax.

Housing policy cannot be shaped by the government's judgment alone, Kim said, adding that market conditions keep changing and the difficulties people feel vary widely.

What is needed now is a process in which the public and experts develop solutions together, rather than the government presenting one-sided answers, he said. The government will listen more closely to voices from the field and actively adopt better alternatives.

Lee Song-ryul, Hankyung.com reporter yisr0203@hankyung.com