Tax breaks floated to foster growth in non-Seoul areas in seemingly election-conscious announcement
The ruling People Power Party on Tuesday announced plans to exempt owners of second or additional homes outside Seoul from taxes.
Rep. Kweon Seong-dong, the People Power Party's floor leader, said at a meeting of the party leadership that lifting taxes for buyers of homes in non-capital regions could be a way of fostering an even growth across Korea, whose population is heavily concentrated in Seoul.
"Some bold policy changes are necessary to even out the trend of Seoul-centered growth while the rest of the country is quickly losing population," Kweon said.
According to the ruling party's plans, non-first-time buyers of homes outside Seoul would not be subject to the increase in taxes faced by second-home owners in the capital.
According to the Seoul Metropolitan Government, the capital city's population is estimated at 9.6 million as of 2024. That means about a fifth of Korea's 51.7 million are living in Seoul.
The People Power Party's policy proposal on Tuesday is seen as an election-conscious move, with the Constitutional Court due to give its verdict on suspended President Yoon Suk Yeol's impeachment shortly.
Boosting growth in areas outside Seoul had been a central issue in the policy agendas of both the People Power Party and rival Democratic Party of Korea in the 2024 general election.
In a gathering of the People Power Party's members on Monday, Rep. Kwon Young-se, the party's chair, said his party "has to stay united to claim victory in whatever comes our way" alluding to a possible presidential election.
arin@heraldcorp.com
