GOVT ANNOUNCE STRONGER REAL ESTATE REGULATIONS

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As housing prices continue to soar despite regulations, the government and the ruling party are warning of stronger measures to retrieve profits earned through real estate speculation. The opposition United Future Party is considering demanding that the minister of land, infrastructure and transport be fired.

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​The Democratic Party vowed to raise the comprehensive real estate holding tax for owners of multiple homes and speculative investors. The ruling party is considering raising the comprehensive real estate holding tax by 4 percent at most, and reducing its basic deductions.

[Soundbite] KIM TAE-NYEON(DEMOCRATIC PARTY FLOOR LEADER) : "We will discuss with the National Assembly additional measures to raise the comprehensive real estate holding tax and reduce tax breaks."

The DP may also levy disciplinary taxes on the owners of multiple homes and investors to retrieve their profits earned through real estate speculation. A bill on mandating lease contract reporting was submitted on Monday as part of measures to cut benefits provided to real estate investors.

[Soundbite] REP. PARK SANG-HYUK(DEMOCRATIC PARTY) : "Contracts can be signed as long as the basic information on transactions is available. There will be no way to raise the prices further."

The Justice Party is calling for heavier taxes to discourage real estate speculation. However, United Future Party's emergency leadership committee chief Kim Chong-in rebutted by saying that real estate speculation cannot be curbed through taxes and that the government's measures will not produce desired effects.

[Soundbite] KIM CHONG-IN(UNITED FUTURE PARTY EMERGENCY LEADERSHIP COMMITTEE) : "Such measures will do little to curb housing prices, because owners of multiple homes can afford to pay higher taxes."

The party's chief policymaker Lee Jong-bae, highlighted the need to ease regulations.

[Soundbite] LEE JONG-BAE(UNITED FUTURE PARTY) : "The market will not respond to excessive regulations. This is not an effective strategy."

The main opposition described the Moon Jae-in administration's real estate policies as failures. The UFP is also considering submitting a proposition to dismiss Minister of Land, Infrastructure and Transport Kim Hyun-mi. Assets of the members of the 21st National Assembly are to be disclosed on July 30. Measures that each political party will take against their members owning multiple homes could largely determine the future course and intensity of real estate policies.