Seoul: Presidential chief of staff for policy Kim Yong-beom said Wednesday the government needs to conduct a comprehensive review of real estate taxation, including property holding taxes, as part of efforts to stabilize the housing market. Kim made such a remark as the government announced a package of measures to curb a renewed surge in home prices in Seoul and parts of the surrounding Gyeonggi Province, including the designation of all Seoul districts as speculative zones and the introduction of stricter lending regulations.
According to Yonhap News Agency, Kim stated in an interview with 3PROTV, a YouTube channel specializing in financial news, that the current property holding tax levels are low. He emphasized the need for a serious review of the overall tax system related to housing acquisition, ownership, and transactions. Kim characterized the possibility of property holding tax hikes as a "rationalization of real estate taxation," suggesting a balanced approach that would increase property holding taxes while encouraging more housing transactions.
Kim highlighted that policies for real estate stability and housing welfare must encompass both taxation and supply, noting South Korea's tax burden remains low compared with the global average. This proposal marks a shift from President Lee Jae Myung's campaign pledge to refrain from relying on tax hikes as a primary tool for housing market stabilization.
On trade issues, Kim mentioned South Korea's aim to make a breakthrough in the ongoing trade negotiations with the United States before the Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju later this month. U.S. President Donald Trump is widely expected to attend APEC events, potentially providing an opportunity for bilateral talks with President Lee.
Kim is scheduled to depart for Washington on Thursday with Industry Minister Kim Jung-kwan for follow-up talks with Washington officials, including U.S. Commerce Secretary Howard Lutnick. Discussions are expected to focus on the details of South Korea's US$350 billion investment package. He noted that the upcoming talks follow a "meaningful response" from the U.S. over the past two weeks regarding Seoul's revised proposal, with Washington having submitted a "meaningful alternative" to the Korean side.