Seoul: Hwang Hee, a three-term lawmaker from the ruling Democratic Party of Korea, has proposed a controversial plan to convert scrapped buses into housing for young people, igniting a wave of anger and backlash. This proposal, seen by many as an insult to young people struggling to find affordable housing, has been widely criticized and ridiculed across online communities.
According to Yonhap News Agency, the 'bus housing' idea has been met with harsh criticism, with comments suggesting the proposal is out of touch with the realities faced by young individuals. Many have questioned the suggested living conditions, asking, "Are young people homeless or refugees?" while others challenged lawmakers to "go live there yourself first" to experience the proposed conditions.
Simultaneously, the South Korean government's plan to overhaul the real estate tax system next year is also facing significant resistance. Since the announcement for public comment on August 4, approximately 1,000 comments per day have flooded the Ministry of Government Legislation's online portal. The proposed legislation seeks to impose punitive taxes on non-resident homeowners and single-home owner-occupiers, including elderly homeowners with no income.
The tax overhaul has particularly alarmed retirees in Seoul's high-priced Gangnam area. These individuals, who purchased homes decades ago at relatively affordable prices, are now facing a potential surge in annual property taxes by tens of millions of won. Moreover, if they decide to sell their homes, retirees are confronted with substantial capital gains taxes. Presently, homeowners meeting specific criteria can receive up to an 80 percent deduction on gains. However, starting in 2028, the deduction will be capped at 2 billion won (US$1.4 million) and reduced to 1 billion won from 2029.
Efforts to mitigate these concerns include a proposal to lower capital gains taxes for single-home owners aged 65 or older who relocate outside the Seoul metropolitan area after living in their homes for a minimum of five years. Yet, this suggestion has also received criticism, with many questioning the fairness of pressuring elderly homeowners to leave familiar surroundings.
Public dissatisfaction extends to the taxation of nonresident homeowners, which critics argue fails to consider individual circumstances. Many nonresident single-home owners contend that they are unfairly labeled as speculators due to temporary relocations for personal reasons, such as family needs.
The ongoing resistance to these tax measures suggests a fundamental misstep in the government's approach to tax reform. The Democratic Party of Korea has expressed willingness to collaborate with the government, hinting that a complete reevaluation of the plan is a possibility.