Lee Hyung-il, the nominee for Deputy Prime Minister and Minister of Finance, stated that he plans to consider the opinions of the National Assembly and specific cases regarding the scope of 'unavoidable reasons' for recognizing periods when individuals did not actually reside in their homes as part of the residency period.
During a confirmation hearing at the National Assembly's Finance and Economy Committee on September 15, Lee expressed his intention to discuss this matter in depth alongside the proposed tax law revisions.
While the scope of recognized reasons can be adjusted through amendments to enforcement decrees without a National Assembly vote, Lee's comments suggest a willingness to gather diverse opinions through legislative discussions and reflect them in the system.
Last month, the government announced a tax law revision that would recognize periods of non-residence due to unavoidable circumstances as part of the residency period. The reasons provided included schooling, job changes or relocations, illness, transferring schools, overseas stays, and caring for parents. However, there have been criticisms that these listed reasons do not adequately capture the variety of real-life situations.
Lee identified the goals of the real estate tax reform as establishing a residency-centered housing market, ensuring fair and equitable taxation, and creating a sustainable tax system. In response to a question about whether the government's reform intentions were effectively communicated to the public and the market, he acknowledged that the explanations were somewhat lacking.
Regarding the expected increase in tax revenue from this reform, Lee indicated that he anticipates it to be approximately 3.4 trillion won over the next five years.
* This article has been translated by AI.
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