High‑Level Coordination Meeting Leads to Expanded Residency Definitions in Tax Law

Seoul — After the election of former prime minister Kim Min‑seok as leader of the Democratic Party, a high‑level policy coordination meeting was convened, resulting in a pledge to broaden residency criteria within the tax framework. The agreement, announced on Sunday, aims to protect property owners who cannot occupy their homes due to unavoidable circumstances. DP senior spokesman Park Sung‑jun highlighted that the parties will jointly amend tax legislation to recognize a wider range of residency situations, thereby mitigating punitive tax impacts on absent homeowners. The meeting also produced consensus on granting local governments the power to issue construction permits for residential complexes of up to 500 units, a measure expected to accelerate housing development in Greater Seoul. The government will simultaneously lower the basic deduction for the Comprehensive Real Estate Holding Tax from 1.2 billion won to 900 million won, aligning fiscal policy with the newly expanded residency definitions.