Ruling Party: No Tax Hikes to Curb Home Prices”…Policy Held Firm Amid Opposition

Ruling Party: Democrats Say Immediate Property Tax Hikes Are Infeasible

Ruling Party: At the July 1st floor leader meeting, Jin Sung-joon, Policy Chair of the Democratic Party, reaffirmed that President Lee Jae-myung’s pledge to avoid curbing real estate through higher taxes remains intact, ruling out immediate tax hikes. “It is not the right time to discuss property tax reform,” he stated firmly. Unlike the previous administration which launched numerous tax measures to tame housing prices, the Lee administration will focus solely on tightening mortgage regulations and boosting housing supply. Jin added a caveat: “Should extreme market turmoil reemerge, we can revisit the tax option.”

Prioritizing Supply: Fast-Track New Towns and Public Redevelopment

Jin Sung-joon stressed that the administration must quickly implement the Third New Town developments and public redevelopment projects, which the Yoon government failed to complete, to avert a looming housing shortage. “Without addressing supply constraints, housing prices will spike again in 2026–27,” he warned, asserting that expanding housing supply is more urgent than tax measures. Following last month’s strengthened mortgage curbs, the government plans to finalize supplementary policies—such as adjusting New Town project timelines and raising floor-area ratios—through central and local government coordination. 사무실 인테리어 업체

President Lee Highlights Need to Diversify Investment Channels

On July 1st at the Cabinet meeting, President Lee Jae-myung noted that past overreliance on real estate as the sole investment vehicle exacerbated housing insecurity. “Fortunately, with the stock and financial markets stabilizing, alternative investment channels are widening,” he stated. Lee urged that the government prioritize financial market stability and the development of new investment pathways over tax interventions. His remarks underscore an intention to diversify capital flows—promoting equities, bonds, and funds—to prevent money from converging solely on real estate. The administration is also exploring measures with the Financial Services Commission to enhance retail investors’ access to these alternatives. shift loan