Roh: ‘No Change in Real Estate Taxes’

“The (real estate) taxation system will not change even when the Roh Moo-hyun administration comes to an end. It cannot be changed. This law was passed under a weak ruling party to strong opposition in the National Assembly, and it will be even tougher to overthrow it,” said President Roh Moo-hyun on Friday, May 19.

President Roh warned of a possible real estate bubble burst at the luncheon meeting for entrepreneurs of small and medium-sized companies held at Cheong Wa Dae.

“The president does not have any regretful feelings for the people living in Gangnam, Seoul. He does not envy the money the people in Gangnam are making. It is just that when the bubble bursts, it may have an impact on the economy.”

He went on to say, “The land and real estate prices are stabilized across the country, but speculation in some districts are making them flutter. This may place our economy in a serious situation, and the government cannot just watch from afar.”

President Roh continued, “There are so many people saying ‘Will the decline (of the house price) really happen?’ and even some in the press are saying the same thing. That is why the people are not selling their property and holding tightly to it, but I have confidence.” He stressed, “Why don’t you try paying your comprehensive real estate tax later on. This taxation system will never change.”

Yeon-Wook Jung jyw11@donga.com