LOCAL-CENTRAL GOV'TS CLASH

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Five local government heads from the opposition party, including the mayors of Seoul and Busan, have called on the central government to keep official real estate prices at last year's levels. During their press conference, they also asked the central government to hand over the right to decide on the official property prices.

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The conflict surrounding official real estate appraisals began when the government announced them last month. This year's official appraisals for apartments jumped some 19 percent on-year, posting the highest growth since 2007. Five mayors and governors from the People Power Party pointed out that pace, rather than the growth itself, is the problem with the official appraisals.

[Soundbite] Oh Se-hoon(Seoul Mayor) : "It is predicted that over 40,000 complaints will be file against this year's official appraisals. It is up 30 times from four years ago."

They called on President Moon Jae-in to provide them with reports on apartment price surveys and enable them to examine how such high increases had been calculated. They also urged the president to order the Board of Audit and Inspection to immediately launch an investigation into the official appraisals, calling them unreliable. They called for maintaining official appraisals at last year's levels, noting people's financial difficulties caused by the pandemic. They also demanded the central government transfer to local governments the right to appraise official real estate prices. The governors and mayors also denounced what they called the central government's unreliable, inconsistent criteria in levying taxes.

[Soundbite] Park Heong-joon(Busan Mayor) : "The government's standards are inconsistent. It is impossible to seek public understanding for the current taxes and other payments."

Previously, the central government said that for those owning just one home worth 600 million won or below, the tax rate would drop by up to 50 percent, and therefore, their property tax would decrease. But the Seoul city government refuted the government's explanation, saying most Seoul citizens don't benefit from the special tax rate. The number of PPP-affiliated local government heads increased to five, following the by-elections. They say they will frequently meet and voice their opinions on pending issues.