The South Korean government and the ruling Democratic Party(DP) have reportedly agreed to lower property taxes for people who own only one home that is worth less than the government-appraised value of 600 million won.

This comes as the government seeks to raise the official prices of real estate to reflect market rates, while preventing a sharp tax increase for owners of one low-to-mid-priced home.

According to a ruling party representative, the two sides reached an agreement after President Moon Jae-in reportedly remained firm on the 600-million-won cap in order to ensure fairness in taxation. The DP had proposed a 900-million-won cap.

The government and the DP had earlier agreed to lower taxes for people falling under the 60 million to 300 million won tax bracket, and to expand the bracket in consideration of soaring housing prices.

Details of the new measure are expected to be announced on Friday.