“Government Employees with More than 2 Houses, Block Promotions, Punish as Crime,” 5 Years Jail, in Democratic Party of Korea-Introduced Bills
2020-7-22, Seoul Shinmun [TRANSLATION]
After Noh Young-min (노영민), Chief of Staff to the President, sold his house in Cheongju, North Chungcheong Province followed by another residence in Banpo neighborhood, Gangnam District, Seoul, he pushed to ban ownership of multiple homes for senior public officials. With this background, the ruling party lawmakers introduced bills, one after another, that disadvantage senior government officials who own multiple houses.
The proposals even include prohibiting the promotion to senior ranks for government employees owning multiple houses or criminalizing high-ranking officials if they do not resolve the multiple housing ownership situation.
According to the National Assembly Bill Information System accessed on July 22, 2020, the revised Public Officials Ethics Act (공직자윤리법) makes it possible to limit the promotion and appointment of senior government officials, who own multiple houses. Usually, the standard for multi-home ownership is owning two or more houses, and high-ranking public officials means department head or higher of government ministries/agencies. The proposal is initiated by National Assemblyman Yoon Jae-Gap (윤재갑), Democratic Party of Korea.
According to the revised bill, if the multiple home owning government officials, who are obliged to register the properties, own houses in the Gangnam District of Seoul, Sejong City, or other areas that have speculative housing markets or areas targeted for adjustment (조정대상지역), then these government officials will receive such disadvantages.
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Shin Jung-Hoon proposes amendments to the Public Officials’ Ethics Act [5 years jail/₩50 million fine]
Yet another bill brings criminal penalties to senior government officials, who do not settle the multiple house ownership issue.
National Assemblyman Shin Jung-hoon (신정훈), Democratic Party of Korea, proposed a revision to the Public Officials’ Ethics Act that punishes senior government employees who own multiple houses with five years of jail or ₩50,000,000 (~$42,000) fine, if the status of the multiple house ownership is not resolved within 60 days.
Kang Byung-won “raise transfer tax to 70% when trading less than two years later”
A “Tax bomb” bill was also introduced. It will apply not only to senior officials, but anyone owning multiple houses.
National Assemblyman Kim Kyo-heung (김교흥) proposed an amendment to the local tax law, which can tax an additional 10% on the current acquisition tax rate if the buyer does not move into the residence within one year after the housing is acquired. The law forces owners to resolve multiple-house ownership as soon as possible.
To prevent multiple house owners from giving a house [say to a family member], instead of selling, National Assemblyman Han Byeong-do (한병도) proposed an amendment to the local tax law, such as raising the acquisition tax rate from the current 3.5% to a maximum of 12%, when multiple house owners give [transfer the deed] a house worth more than ₩300,000,000 (~$250,000) in the areas targeted for adjustment.
National Assemblyman Kang Byung-won (강병원) proposed an amendment to the Income Tax Law, which increases the capital gains tax rate by up to 80% for the selling period of less than one year, and up to 70% for the period of more than one year and less than two years, depending on the period of sale. The intention is to confiscate unearned income [profit from sales] from multiple house owners when they sell.
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Source: https://www.seoul.co.kr/news/newsView.php?id=20200722500131
