NEWS BRIEF

[Anchor Lead]

Land Minister Kim Hyun-mee spoke on a radio program Tuesday and said authorities were discussing ways to ensure donating real estate won't be more beneficial than selling them off. This comes after concerns arose following the ownership tax hike on properties, that multiple home owners will try to bypass the hike by opting to donate their real estate, for instance to their children. On Friday, the government announced stringent measures to curb housing prices, raising ownership tax on people owning multiple homes to 6 percent. Capital gains tax has also been raised for those selling houses located in designated areas where the market is overheated.
Main opposition United Future Party's interim chairman Kim Chong-in spoke at a policy seminar Tuesday and argued the real estate issue can't be solved with taxation. He said speculative investors are not affected by tax hikes and government measures have rather served to raise home prices. He said the current scheme of selling apartment units before they are fully constructed should be changed to a "construction first later sale" system. Kim also called for a long-term operation of mortgage loans exclusively for young people.
The Ministry of Trade, Industry and Energy said Tuesday that both the production and exports of domestic cars dropped in the year's first half amid the coronavirus pandemic. Some 1.62 million finished cars were produced in the first six months, down 19.8% year-on-year. The number of vehicles shipped overseas also fell 33% to around 826-thousand-700 units. The plunge in exports is mainly due to global lock down measures leading to increased inventory.