S KOREAN PARLIAMENT PASSES CONTROVERSIAL ECONOMIC LAWS.

SEOUL, May 1 Asia Pulse - South Korea's parliament passed a string of economic laws that the government claims are vital to fuel investments, cut waste and boost growth, sources said Friday.

The bills call for adjustments to income taxes on real estate transactions and permitting the merger of Korea National Housing Corp. and Korea Land Corp., which have overlapping areas of operations.

Of the bills passed, several circumvented regular legislation and judiciary committees and review processes, and were instead referred directly to the plenary session by Speaker Kim Hyung-o after lawmakers were unable to find middle ground after months of debate.

The passage of the new income tax rules temporarily scraps high tax rates for multiple home owners, which at present allows the government to collect 45 percent of all profits generated by home sales.

Under the new rules that will be maintained until the end of 2010, income tax rates will be lowered to a maximum 35 percent, while tax rates will be lowered for sales of non-productive land held by both individuals and businesses.

The government said levying "punitive" taxes has effectively blocked sales of homes that could bring down housing prices, although opposition lawmakers argued the bill will only help the rich.

Parliament, which is effectively controlled by the ruling Grand National Party, also passed a law permitting the merger of the state-run Korea National Housing Corp. and Korea Land Corp., which have overlapping areas of ...