Joeunhee: "Even Living in a 1 Billion Won House, Real Demand Must Be Protected... Property Tax Reduction Up to 200,000 Won Per Household"

Former Gangdong District Mayor Lee Hae-sik, Democratic Party Lawmaker, Criticizes "Potential Abuse of Discretion"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Jo Eun-hee, Seocho District Mayor, who is being mentioned as a candidate for the opposition party's Seoul mayor, stated, "For those who live in their own homes purchased for 1 billion won, the state should protect their taxes," and announced plans to reduce property tax by half for single-homeowners with properties valued under 900 million won. This is expected to result in a maximum savings of 200,000 won per household.

On the 11th, Mayor Jo appeared on MBC Radio's 'Kim Jong-bae's Focus' and said, "Currently, people are suffering from a tax bomb, a water bomb due to heavy rain, and a virus bomb due to COVID-19 (novel coronavirus infection)," expressing her stance.

Although the government announced a property tax reduction as part of the official price realization roadmap at the end of July, Seocho District revealed that it had prepared a property tax reduction plan earlier. Mayor Jo criticized, "I don't know when the government started reviewing this internally, but while the real estate and lease three laws passed like lightning, the roadmap and tax reduction issues are scheduled for October. I ask them to quickly announce the standards and timing like lightning to ease the people's suffering."

Regarding the setting of the property tax reduction criterion at an official land price of 900 million won, she said, "There are 137,000 households paying property tax in Seocho District, and about 70,000 households, roughly 50%, pay taxes based on the 900 million won official land price standard. Whether a household owns a 400 million won, 700 million won, or 1 billion won home, if it is a single-homeowner living for actual demand, the state should protect their taxes," adding, "For homes valued over 900 million won, even if the district office reduces taxes, the comprehensive real estate tax is collected as a national tax, which diminishes the effect, so we set the standard at 900 million won."

The reduction amount is up to about 200,000 won per household. Mayor Jo said, "If the reduction is limited to single-homeowners with properties under 900 million won, the average per household is less than 200,000 won," and added, "Emergency disaster living expenses are 200,000 won per person, so this amount is somewhat less."

She justified the reduction by citing the 'disaster situation.' Mayor Jo explained, "According to Article 11 of the Local Tax Act, local government heads can reduce property tax by up to 50% through ordinances, especially when disasters occur. Everyone agrees that the current COVID-19 situation is a disaster." She also mentioned that in 2005, almost all district offices in Seoul had precedent for property tax reductions.

Regarding communication with neighboring Gangnam and Songpa districts, she said, "We have not proceeded yet but plan to discuss it," and added, "I also considered proposing it at the district mayors' council, but Prime Minister Chung Sye-kyun mentioned (reducing property tax burden for homes worth 500 to 600 million won) in an interview first, so I am waiting on that part."

On being considered a candidate for the Seoul mayor by-election, she said, "I was the first female deputy mayor of Seoul, and currently, I am the only opposition party re-elected district mayor among the 25 districts," adding, "My duty is to protect residents safely and comfortably from water bombs, tax bombs, and virus bombs."

However, Lee Hae-sik, a Democratic Party lawmaker and former Gangdong District Mayor, criticized in the same radio interview, "It is impossible for Seocho District to raise taxes like that on its own," and said, "Property tax reductions are done when there is a disaster or special financial demand, but Seocho District alone does not have a special disaster."

He pointed out, "Saying that only Seocho District must reduce property tax by half somewhat overinterprets the situation and risks abusing discretion," and added, "It would be more appropriate to propose through the district mayors' council to the Seoul city and government to induce uniform property tax reductions nationwide."

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