+
South Korea eyes triple real estate tax revenue in 2021
Real Estate

South Korea eyes triple real estate tax revenue in 2021

On Monday the Ministry of Finance said that a revision to South Korea's real estate holding tax law will help the government collect 5.7 trillion or 4.8 billion won in such taxes in 2021, a three-fold increase over 2020.

As part of efforts to cool the country's overheated real estate market, the government changed the law last year, raising the holding tax rate for homeowners. This year, the changes came into effect.

Since President Moon Jae-in took office in 2017, his administration has enacted a slew of loan restrictions and tax reforms that have done little to cool the housing market.

According to Kookmin Bank data, the average price of an apartment in Seoul has roughly doubled since 2016, reaching 1.18 billion won in August.

Park, who is one of the 947,000 people or 2% of South Korea's 52 million people affected by the tax hike this year, claims he will owe 6.3 times more taxes on his real estate holdings in 2021 than he did in 2020.

Park, who requested anonymity due to the sensitivity of the subject, said the tax increase will not have the desired effect of forcing him to sell one of his many properties.

The annual holding tax rate for multi-property owners has been increased to as much as 6%, up from 3.2% previously.

The finance ministry said that only a small proportion of property owners will face higher taxes as a result of the housing market stabilisation policy.

Others, on the other hand, claim they are unconcerned because the tax only affects those who own some of the country's most valuable homes.

Image Source

On Monday the Ministry of Finance said that a revision to South Korea's real estate holding tax law will help the government collect 5.7 trillion or 4.8 billion won in such taxes in 2021, a three-fold increase over 2020. As part of efforts to cool the country's overheated real estate market, the government changed the law last year, raising the holding tax rate for homeowners. This year, the changes came into effect. Since President Moon Jae-in took office in 2017, his administration has enacted a slew of loan restrictions and tax reforms that have done little to cool the housing market. According to Kookmin Bank data, the average price of an apartment in Seoul has roughly doubled since 2016, reaching 1.18 billion won in August. Park, who is one of the 947,000 people or 2% of South Korea's 52 million people affected by the tax hike this year, claims he will owe 6.3 times more taxes on his real estate holdings in 2021 than he did in 2020. Park, who requested anonymity due to the sensitivity of the subject, said the tax increase will not have the desired effect of forcing him to sell one of his many properties. The annual holding tax rate for multi-property owners has been increased to as much as 6%, up from 3.2% previously. The finance ministry said that only a small proportion of property owners will face higher taxes as a result of the housing market stabilisation policy. Others, on the other hand, claim they are unconcerned because the tax only affects those who own some of the country's most valuable homes. Image Source

Related Stories

Gold Stories

Next Story
Infrastructure Transport

MMRDA Targets Completion of Projects by December 2028

The Mumbai Metropolitan Region Development Authority (MMRDA) is targeting the completion of all its ongoing infrastructure projects by December 2028, a year ahead of its December 2029 deadline, Metropolitan Commissioner Dr Sanjay Mukherjee has said.Speaking at the sixth edition of the Real Estate & Infrastructure Investors' Summit (REIIS) 2026 in Mumbai, Mukherjee said the authority was developing an integrated network of roads, tunnels, sea links and Metro corridors under its broader vision of “Mumbai in 59 Minutes”.The objective is to improve east-west and north-south connectivity an..

Next Story
Building Material

High-Performance Façades Gain Ground in Indian Buildings

High-performance façades are gaining greater importance in Indian architecture as developers and architects increasingly focus on energy efficiency, thermal comfort and building performance, according to Shankar Fenestrations & Glasses.The company said modern façade systems are increasingly being considered as part of a building's overall performance strategy rather than being used primarily as aesthetic elements.High-performance glass, curtain wall systems and structural glazing can contribute to thermal regulation, solar control, daylight management and indoor comfort. Their growing ad..

Next Story
Technology

SPML Infra's 104.4 kWh BESS Battery Pack Clears Global Tests

SPML Infra has announced that its proprietary 104.4 kWh Battery Energy Storage System (BESS) battery pack has completed key international safety, performance and transportation testing and certification requirements, marking a step towards its commercial deployment.Developed under the company's own intellectual property, the battery pack has completed requirements under UL9540A, IEC 62619, IEC 63056, IEC 60730, IEC 61000-6-2, IEC 61000-6-4 and UN38.3 standards.The testing covers areas including thermal runaway safety, battery performance, system functional safety, electromagnetic compatibility..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code