Korean Economy News
S. Korea has no plan to raise property ownership tax: finance minister

By Cho Si-young

The South Korean government has no plan to up additional tax levy on multiple homeowners in a further move to cool overheat in the housing market, said the deputy prime minister for economy.

“There has been some effect from latest real estate measures, but we have to wait and see further. But there must be discretion in raising the blanket levy on property ownership,” Kim Dong-yeon, also the finance minister, told reporters on Tuesday.

Property owners pay taxes to both local and central governments. Recent string of measures designed to clamp down on speculative home trade raised taxes for excess profits in areas categorized speculative or watch zones, not ownership.

On Aug. 2, the government designated Seoul and other cities as "overheated speculative districts," rolling out the toughest rules, including up to a 20 percentage point hike in capital gains taxes against owners of multiple homes.

Kim was responding to suggestions by some senior figures in the ruling Democratic Party.

Choo Mi-ae, chairwoman of the ruling Democratic Party, recently said the government should proactively examine lapping tougher taxes on property-rich individuals, blaming wealth from property leases one of primary causes in inequalities.

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