Korea's housing debate intensified as the People Power Party called a 1 billion won cap on capital gains tax deductions and an owner-occupancy-focused tax overhaul "punitive taxation," while the Democratic Party blamed weak supply for price pressures in Seoul. Seoul construction starts were only 58.01% of the 10-year average, with non-apartment starts at 32.95%, prompting Prime Minister Han Seong-sook to pledge 300 staff per district and one-stop support centers. Borrowing costs also rose as the three-year Korean treasury yield reached 4.014%, the 10-year yield hit 4.540%, and the 10-year U.S. Treasury yield climbed to 4.965%. Higher oil prices and stronger-than-forecast U.S. core inflation lifted the probability of a 0.25 percentage point FOMC (Federal Reserve rate-setting committee) increase to as high as 90%, according to CME FedWatch. Separately, Nuveen Asset Management said global income-producing real estate transactions rose 24% year on year and highlighted retail and public rental housing, while the Ministry of Land, Infrastructure and Transport formally pursued dividing Korea Land & Housing Corporation into two entities headquartered in Jinju.