Seoul: South Korea will unveil property tax revisions later this month as part of its effort to strike a balance between recurrent and transaction taxes, the finance minister said Tuesday. Finance Minister Koo Yun-cheol made the remark during an interview with MBC Radio, a local broadcaster, noting the government intends to make a final decision after gathering opinions from the public.
According to Yonhap News Agency, Koo emphasized the government's commitment to creating a property market that prioritizes actual residents over speculative trading. "Basically, we aim to establish a property market centered on actual residents, under the principle that homes are for living, not buying," Koo stated, reflecting the administration's efforts to curb speculative practices in the real estate sector.
During the interview, Koo mentioned that the government will review various aspects of real estate taxation. This includes potentially reducing benefits for long-term ownership of properties that have not been lived in by the owners. However, he refrained from providing further details on what specific changes may be expected.
Koo highlighted the government's focus on achieving a balance between recurrent and transaction taxes, indicating a comprehensive review of the current tax framework. This review is part of an effort to ensure that the taxation system is fair and balanced for all stakeholders in the housing market.
Additionally, Koo touched upon the three recent megaprojects announced by the government, expressing optimism about the opportunities these projects could bring if executed with full commitment and speed.
In the context of the booming semiconductor industry, Koo noted that the government has not yet estimated the additional tax revenue collected from chipmakers. An internal review is underway to determine how these funds can be utilized to prepare for future economic challenges.