REAL ESTATE COMMITTEE MEETS DISTRICT CHIEFS

[Anchor Lead]

The Democratic Party's real estate committee has met with the chiefs of seven districts in Seoul. They urged the government to ease regulations on apartment reconstruction and cut property taxes. Some of the ruling party lawmakers blasted the committee for considering lowering real estate taxes.

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The chiefs of seven districts in Seoul met with the members of the Democratic Party's real estate committee, which is trying to overhaul the incumbent administration's real estate policies. Gangnam, Songpa and Yangcheon districts are home to large upscale apartment complexes. Property taxes and apartment reconstruction are particularly sensitive issues there. The district chiefs want reconstruction regulations to be eased and property taxes to be lowered to reduce residents' financial burden.

[Soundbite] Kim Soo-young(Head, Yangcheon-gu Dist.) : "The comprehensive real estate holding tax is too high now, and many more people must pay it. They are not happy about it."

Committee members agree that property taxes must be lowered for homes whose public appraisal is under 900 million won. Currently only homes less than 600 million won are eligible for tax cuts. The committee is considering enacting the relevant laws at the National Assembly next month and applying new tax rates from July. However, some members of the ruling party are opposed to lowering the comprehensive real estate holding and capital gains taxes, because this will only benefit wealthier citizens. Some party members even blasted the idea in front of Chairman Song Young-gil, who had expressed support for the committee.

[Soundbite] Kang Byung-won(DP) : "Your ideas and suggestions are a mess. Our party's real estate committee is not about providing tax cuts to the rich."

The DP and the government are at odds over whether regulations on home mortgages should be eased. The ruling party's real estate policies have been put to the test.