[2020 National Audit] Building Owner from Birth... Real Estate Asset Gift of 9.8 Billion KRW to '0-Year-Old'
Jinseongjun, Democratic Party Lawmaker: "Sharp Increase in Minor Asset Gifts... Real Estate Gifts Totaled 454.5 Billion KRW in 2018"
[Asia Economy Reporter Wondara] The scale of real estate asset gifts to minors has surged 2.5 times over the past five years.
According to the 'Status of Asset Gifts to Minors' data submitted by the National Tax Service to Jin Seong-jun, a member of the National Assembly Land, Infrastructure and Transport Committee from the Democratic Party of Korea, real estate gifted assets to minors amounted to 454.5 billion KRW in 2018, which is 2.5 times higher compared to 181.6 billion KRW in 2014. In 2015, it was 168.4 billion KRW, in 2016, 231.3 billion KRW, and in 2017, 337.7 billion KRW.
From 2014 to 2016, financial assets had the highest share of asset gift types, but from 2017 and 2018, real estate became the largest form of asset gifting. As of 2018, real estate assets accounted for 36% (454.5 billion KRW), securities 25% (310.0 billion KRW), financial assets 32% (400.7 billion KRW), and other assets 7% (92.8 billion KRW).
The timing of real estate gifts to minors is also getting earlier. Real estate gifts to preschool children increased by 179%, from 49.0 billion KRW in 2014 to 100.3 billion KRW in 2018; gifts to elementary school students increased by 223%, from 75.3 billion KRW in 2014 to 153.9 billion KRW in 2018; and gifts to middle and high school students increased by 105%, from 107.1 billion KRW in 2014 to 200.3 billion KRW in 2018. Real estate asset gifts to newborns aged zero also increased from 0 KRW in 2014 to 2 billion KRW in 2015, 1 billion KRW in 2016, 1.3 billion KRW in 2017, and 9.8 billion KRW in 2018.
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Representative Jin said, "The rapid increase in real estate asset gifts to minors shows that asset polarization in our society is being inherited and becoming a social status issue," adding, "We must strengthen verification of whether there are any illicit gifts to minors without income to minimize socioeconomic polarization."
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