Ruling party to maintain tax level on high-end homeowners

SEOUL, Nov. 21 (Yonhap) -- South Korea's ruling party said Friday it will maintain the level at which the country's progressive tax is levied on owners of high-end homes, backpedaling from its initial pledge to radically overhaul the legacy of the former liberal government.

The comprehensive real estate tax, which applies to homes valued at 600 million
won (US$400,000) and up, was first introduced in 2005 in a bid to stem real
estate speculation and help improve income inequalities.
The Grand National Party (GNP) and the incumbent conservative government have
attempted to revise or remove it since taking power in February this year,
calling it a violation of free market principles.
The Constitutional Court also issued a ruling earlier this month partially
striking down the tax system, paving the way for the government to refund a
significant portion of the tax.
Seven groups of residents owning high-end homes, mostly in affluent neighborhoods
in southern Seoul, have filed petitions with the top court since 2006, claiming
the tax overlapped regular property taxes.
Friday's decision by the GNP marks the first step in political efforts to revise
the tax, and opens it to further negotiations with opposition parties on minor
details. It also comes amid criticism that the ruling conservative party focuses
on policy drives aimed at benefiting the rich rather than the general population.
The GNP controls an absolute majority of 172 seats in the 299-member unicameral
house, while its main opponent holds 83.