President Yoon Suk Yeol says the government will fully scrap plans to intentionally raise the declared value of real estate annually to lessen people's economic burden. 

Yoon made the remark on Tuesday during a forum on people’s livelihood in Seoul.

He said the previous government slapped punitive taxes to address its failed real estate policies, adding that such a plan to intentionally raise the declared value of real estate, in particular, had brought about significant side effects and caused further hardship to the people. 

The declared value of a home as appraised by the government serves as the barometer in levying property taxes, health insurance fees and the national pension. A higher declared price means a heavier tax burden.

The president said the previous government had raised the declared value of real estate by ten percent annually on average to a total of 63 percent during five years, which ultimately resulted in greater burden in residential expenses for people who owned just one home. 

Also on Tuesday, Yoon unveiled plans to completely overhaul urban regeneration projects.

He said to that end, the government will pursue a “New Village” project to enable all residents to enjoy clean housing and high-quality community facilities, adding that the government will inject a total of ten trillion won for the project for the next ten years.