South Korea's ruling party has raised the possibility of revising or scrapping the long-term homeownership capital gains deduction, according to 동아일보. The report, published Monday, says the move has reignited conflict between the party and the presidential office over real estate policy.
The deduction in question is a tax relief tied to how long a homeowner has held a property. The party's shift toward reconsidering it follows a broader debate over property-related taxes.
동아일보 also reported concerns that a tax overhaul raising the burden on homeowners could unsettle the jeonse rental market, where tenants pay large lump-sum deposits instead of monthly rent. Separately, 머니투데이 reported that the ruling party has called for a higher deduction threshold under the comprehensive real estate holding tax, a change that could affect sentiment in Seoul's Gangnam district.
The debate is unfolding against a political backdrop. 에너지경제신문 framed the discussion around fears of a poor showing for the Democratic Party in Seoul in the next general election. On KBS's current affairs program, guests offered competing explanations for demands affecting non-resident single homeowners, with one describing them as a reflection of public feeling on real estate and another attributing them to anxiety about the election.
The source material does not specify the size of any proposed change, a timeline for a decision, or the presidential office's formal position.
What to watch next: whether the party and the presidential office settle on a unified tax package, and how the proposed changes are received in Seoul's housing market.
