SEOUL, The ruling Democratic Party (DP) on Thursday welcomed the government's plan to increase taxes on properties to cool down the overheated housing market.

But the main opposition Liberty Korea Party (LKP) denounced the government for increasing the tax burden on middle-income households, claiming that its policy failure is to blame for soaring housing prices.

The government said earlier in the day that it will impose tougher taxes on the owners of high-value houses and multiple homes and increase housing supply in Seoul and adjacent areas.

The ruling party expressed its support for the government's measures, vowing efforts to revise a tax code and enact relevant laws to stabilize the housing market.

"It was a timely, important announcement that could help cool down the overheated housing market and protect those who buy homes for living," the DP said.

"The ruling party and the government have a firm stance that they will curb speculative property demands and stabilize rising home prices. If property prices continue to show an abnormal surge, we and the government are ready to take additional measures," it added.

But the conservative LKP said that the regulation-focused measures will do little to stabilize the market.

"The regulation-focused policy will eventually hurt middle-income households and ordinary people," the party said. "The housing market is not a thing that can be controlled with a club. That would only distort the housing market."

Source: Yonhap News Agency