Uri: No Change to Real Estate Policy

Authorities from Cheong Wa Dae, Uri Party, and the government declared yesterday that “there won’t be changes to the real estate policy.” Since there have been claims from the ruling Uri Party recently for a fine adjustment in the real estate policy, this seems to be an attempt to put a break on these demands.

Appearing on a radio show yesterday, Park Byeong-won, the First Vice-Minister of Finance and Economy, said, “Even if the ruling party recommends it, it would be difficult to reduce the comprehensive property tax or capital gains tax.” He added that, “Although it is the government’s policy to incrementally reduce transaction taxes as ownership taxation has been reinforced, it’s too early to talk about modifying the tax system, even before it’s launched.”

The reason why all of the governmental offices concerned with economic policy are concertedly sending a strong rejection signal to the voice calling for policy reform is that it could stimulate the speculator’s expectations to agitate the real estate market again and compromise the credibility of the government’s policies.

To prevent conflict between the party and the government from surfacing, authorities from the Uri Party and Cheong Wa Dae have also intervened in the market by making announcements. In a general meeting of the Uri Party Assembly members held at the party’s headquarters in Yeongdeungpo, the floor leader Kim Han-gil said, “there are not revisions to the keynotes of the real estate policy.”

Jeong Mun-su, the presidential advisor for economic affairs, also announced in a press conference, “Alongside rightfulness, stable consistency is crucial to successfully carrying out real estate policies. It is inappropriate to revise policies at this point.”

Leaving an apple of discord, however, Kang Bong-gyun, the party’s chief policy commissioner has recently said, “Even though we had no party meetings (on revising the real estate policies), I have arranged ideas [about how to revise real estate policies]. They are aiming at eliminating unjust damages on non-speculators and households owning no more than one house.”

Hyun-Jin Kim In-Jik Cho witness@donga.com cij1999@donga.com