Finance Minister and Deputy Prime Minister Ku Yun-cheol announced plans to unveil reforms to the real estate tax system by the end of July. He stated that adjustments to property and transaction taxes will be considered in balance with each other.
In a phone interview on MBC Radio's 'Kim Jong-bae's Focus,' Ku said, "We are preparing to announce around the end of July."
He explained the basic direction of the real estate tax reform, stating, "The principle is that homes should be for 'living' rather than 'buying,' focusing on establishing a housing market centered on actual residents."
Ku added, "The government will not make unilateral decisions; I will soon listen to public opinions and voices from the field before finalizing the government's stance."
He refrained from commenting on specific reform measures, such as adjustments to the fair market value ratio or reductions in benefits for long-term non-resident holders. In response to questions about related reports, he said, "That aspect will also be considered as part of public opinion."
However, he left open the possibility of adjusting both property and transaction taxes. When asked if it was correct to adjust both, Ku replied, "We are looking at them together in terms of achieving balance between the two."
There is keen interest in whether the tax reform plan to be announced at the end of the month will include measures to establish a housing market focused on actual residents. Given Ku's mention of balancing property and transaction taxes, it is suggested that the government may consider the overall structure of real estate tax burdens rather than addressing specific taxes in isolation.
Regarding the government's ongoing 'three mega projects,' Ku emphasized the importance of a major industrial transformation centered on artificial intelligence (AI) semiconductors.
He stated, "The AI semiconductor revolution has far greater civilizational significance than the construction of the Gyeongbu Expressway during President Park Chung-hee's era or the IT revolution during President Kim Dae-jung's time. Fortunately, South Korea is well-prepared, and if we respond with a full-scale and rapid effort, it will present tremendous opportunities."
Addressing concerns about regional disparities, Ku proposed a plan to build a nationwide industrial ecosystem. He said, "We plan to utilize playgrounds across the country evenly. For example, Honam will serve as the second semiconductor production base after the capital region, Chungcheong will handle packaging, and Yeongnam will specialize in materials, parts, and equipment needed for AI, creating an AI semiconductor ecosystem across the Korean Peninsula."
* This article has been translated by AI.
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