Ha Jun-kyung, South Korea's Presidential Office Senior Secretary for Economic Growth, stated on the morning of the 27th that the government will soon announce tax reforms targeting ultra-high-value homes, commonly called 'one solid house,' after gathering public opinion. Speaking on SBS Radio's 'Kim Tae-hyun's Political Show,' Ha explained the reforms aim to prevent suffering caused by real estate issues while establishing a fair tax system. The announcement follows a Prime Minister-led discussion held today and continuous presidential feedback, with the government considering residential welfare and tax equity as core principles.
Ha Jun-kyung Outlines Tax Reform Principles for Ultra-High-Value Homes
When asked about the criteria for ultra-high-value homes subject to increased property tax, Ha Jun-kyung stated, "We are preparing various plans, so it is difficult to confirm that (the criteria for ultra-high-value homes) right now." He added, "There is another discussion chaired by the Prime Minister today, and the President is also continuously receiving feedback. The basic principle is that we hope to avoid suffering because of real estate."
Ha emphasized the government's dual objectives: "We must also create a fair tax system. We will consider all values together, including residential welfare and tax equity."
Government Prepares Rental Market Measures Focusing on Supply
Regarding rental market measures, Ha Jun-kyung explained, "Preparations are being made on multiple levels. To stabilize monthly and jeonse rents, there must be a lot of supply." He noted, "There are also preparations for parts that can be supplied quickly in the short term. It will be announced soon."
Ha added, "There are also parts where costs have increased in the jeonse market due to trust issues such as jeonse fraud. We are also preparing measures for that."
Loan Regulations May Be Adjusted Selectively for Genuine Buyers
On loan regulations, Ha Jun-kyung indicated the possibility of selective easing for genuine buyers. He stated, "If everyone takes out loans, housing prices will rise. Then more loans will be needed, but you can't drink salt water because you're thirsty."
However, he acknowledged, "Nevertheless, we must fix some unreasonable parts in the loan area that need to be corrected." Ha outlined the government's approach: "One principle we have is that rather than loans that increase demand, let's review loans that activate supply."
He specified situations requiring adjustment: "Cases where promises were made in the past but suddenly became impossible due to institutional reasons, or cases where banks suddenly tightened conditions—in these cases, we need to prepare pinpoint exit strategies."
President Lee's San Francisco Meeting with Big Tech CEOs Highlighted
Regarding President Lee Jae-myung's meeting with global big tech company representatives in San Francisco last weekend, Ha Jun-kyung stated, "If President Lee had not gone, it would have been nearly impossible for these people to gather together."
Ha emphasized the significance: "These people regard Korea as very important and think they need to work together with Korea." He revealed, "Microsoft's CEO sent a message asking to be included via video because he had a meeting on the White House side."
On AI's economic impact, Ha warned, "As time passes, it will spread to the economy, but if it spreads incorrectly, it will be a big problem. If enormous amounts of money go into real estate, only those who own land will benefit." He stated, "We are working to make it spread evenly throughout the economy so that it can create a virtuous cycle. You will start to feel the changes little by little from now on, and in a few years you will think the world has changed a lot."
FAQ
What did Ha Jun-kyung announce on the morning of the 27th regarding ultra-high-value homes?
Ha Jun-kyung announced that the South Korean government will soon release tax reforms targeting ultra-high-value homes, commonly called 'one solid house,' after gathering public opinion. He stated the reforms aim to prevent real estate-related suffering while establishing a fair tax system, with the government considering both residential welfare and tax equity.
Why is the government preparing rental market measures according to Ha Jun-kyung?
According to Ha Jun-kyung, the government is preparing rental market measures on multiple levels to stabilize monthly and jeonse rents through increased supply. He explained that costs in the jeonse market have risen due to trust issues such as jeonse fraud, and the government is preparing measures to address these concerns as well.
