Minister of Land, Infrastructure and Transport candidate Byeon Chang-heum is coming to work at the hearing preparation office at the Seoul Regional Construction Management Office of the Gwacheon Government Complex on the 21st. Yonhap News “/>-
Minister of Land, Infrastructure and Transport candidate Byeon Chang-heum is coming to work at the hearing preparation office at the Seoul Regional Construction Management Office of the Gwacheon Government Complex on the 21st. yunhap news
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On the 23rd, a candidate for the Minister of Land, Infrastructure and Transport, Byeon Chang-heum, who was ahead of the National Assembly’s personnel hearing, expressed the opinion that strengthening the real estate ownership tax was appropriate. The more expensive houses and the more houses they own, the more tax burden needs to be strengthened. He also said that it is “not appropriate” even regarding the’tax bomb theory’ that is rising due to the steep increase in comprehensive real estate tax.
In addition, he emphasized that it is necessary to thoroughly recover the market profits from real estate development through the pre-sale price ceiling system and the reconstruction excess profit recovery system. When Byun becomes the minister, there are concerns that the existing real estate policy, which has already been revealed as a failure in the market, may not only be continued as it is but may be strengthened.
“It’s not a tax bomb. Three more burdens have to be increased”
According to the National Assembly and the Ministry of Land, Transport and Maritime Affairs on the 21st, candidate Byun said in the response to the personnel hearing submitted to the National Assembly that day, “the last ‘7·10 real estate measures’ has strengthened the tax rate for multi-homed people.” The more it is, the greater the tax burden should be.” It is interpreted as dismissing concerns that the burden of holding tax (property tax + tax) will increase to the extent that retirees and others will be unable to afford it from next year due to the increase in the public price and tax rate hikes.
Candidate Byun emphasized that “regulation to eradicate speculative demand is necessary” on the point of “punitive taxation”. In addition, he said, “(expression) is not appropriate” regarding the’deposit tax bomb’. 1 There was also a negative reaction to the plan to ease the taxation for the homeowners. Candidate Byun said, “In the case of a family tax, a basic deduction of 300 million won is added for one household, and a special deduction for senior citizens and long-term holding is applied. There is” he explained.
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The government imposes high taxes on all processes of real estate transactions, including acquisition tax, possession tax, and transfer tax. It is pointed out that there is a need for improvement in order to activate the transaction, but candidate Byeon expressed a negative opinion. He said, “Transfer tax is sometimes perceived as a transaction tax because it occurs at the transaction stage, but it is a type of income tax that is levied upon gains, such as earned income and financial income.” It is connected with his usual argument that the price difference in real estate is unearned income and must be thoroughly recovered. Candidate Byun evaluated that “The strengthening of the heavy tax rate on the transfer of housing for speculative purposes such as multi-homeowners and short-term owners contributed to the realignment of the housing market, centered on end-users.”
“Development profits such as reconstruction are thoroughly recovered”
Candidate Byun said, “Market gains from development projects such as redevelopment and reconstruction should be redeemed through the sale price ceiling system and the redevelopment excess profit recovery system.” It is interpreted as a means of continuing the current regulations applied to maintenance projects. He argued that “the public and the society greatly contributed to the profits of real estate development, such as urban planning through use area and floor area ratio, construction of living infrastructure such as transportation and parks, and concentration of business facilities.”
He also defended the Lease Protection Act, which is considered the main culprit of the jeonse crisis. Candidate Byun said, “The 3rd Lease Act is necessary to guarantee the tenant’s right to live. The jeonse crisis was caused by various factors such as low interest rates and household division in addition to the 3rd Lease Act.”
It also revealed a plan to introduce public-owned housing in the 3rd new town. He said, “Public self-owned houses can be promoted in a variety of ways, such as conditional redemption, land lease, share-sharing, and profit-sharing,” he said. “It will serve as a residential ladder for multiple classes.” It was also said that it was necessary to expand the monthly rent tax credit to alleviate the housing burden on renters.
Regarding the’rental suspension method’ initiated by the ruling party, he said, “I sympathize with the difficulties of the tenant,” and said, “It is necessary to review tax incentives and financial support measures for the tenant.” Regarding this, Kwon Dae-jung, professor of the Department of Real Estate at Myongji University, pointed out that “Candidate Byeon is expected to continue the failed existing policy stance,” and pointed out that “the shortage of supply and overheating of demand will not change at all.”
Candidate Byun is hit by public opinion for inappropriate remarks related to the death of a screen door at Guui Station in 2016 when he was the president of Seoul Housing and Urban Corporation (SH Corporation). There are also controversy over the suspicion that the ‘parachute personnel’ who hired acquaintances and disciples, and the suspicion that they drove a voluntary contract to acquaintances. The opposition party foretold’concentrated verification’ of candidate Byun.
Reporter Jinseok Choi/Dongwook Jwa [email protected]
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