Housing Capital Gains Reach 30 Trillion Won... 120 Million Won Left Per Case

[Image source=Yonhap News]

[Asia Economy Reporter Park Cheol-eung] It has been revealed that the profit from buying and selling houses exceeded 30 trillion won in a single year. This is an increase of 17 trillion won over four years.

On the 28th, Kim Doo-kwan, a member of the National Assembly's Planning and Finance Committee from the Democratic Party of Korea, reported that the housing capital gains in 2018 amounted to 31.05 trillion won, an increase of 17.5 trillion won compared to 13.57 trillion won in 2014, four years earlier.

In 2018, the number of housing transfers was about 256,000 cases. It is explained that the average capital gain per housing transfer was estimated to be 121.29 million won.

However, it is pointed out that the amount recovered through taxation does not correspond proportionally to this. According to data submitted by the National Tax Service, the total revenue from capital gains tax accounted for about 16 trillion won in 2019 tax revenue, and based on the taxable amount, the capital gains tax revenue from housing is estimated to be about 6 trillion won, recovering approximately 20% of the gains.

Representative Kim said, "Housing capital gains tax is not a transaction tax but a means to recover unearned income," and added, "The amount recovered through taxes is small compared to the skyrocketing capital gains."

He continued, "The real estate capital gains tax system needs to be reorganized to strongly recover unearned income," and said, "A fundamental change in thinking is necessary for policies to recover speculative profits."

This content was produced with the assistance of AI translation services.