Gangnam-gu Opposes Increase of Joint Property Taxation from 50% to 60%

Jung Soon-kyun, Mayor of Gangnam District, Says "Local Tax Amendment is 'Irresponsible Desk Legislation'... Will Unite with Other Districts to Block It"

[Asia Economy Reporter Jong-il Park] Gangnam-gu (District Mayor Jeong Soon-gyun) expressed opposition on the 23rd to the proposed amendment to the Local Tax Basic Act, which aims to increase the proportion of jointly taxed property tax from the current 50% to 60%, stating that it is "absolutely unacceptable."

Jeong Soon-gyun, Mayor of Gangnam-gu, criticized, "The proposal to increase the jointly taxed property tax should prioritize setting a direction and improving the system that aligns with the purpose of reducing financial disparities among autonomous districts. Raising only the tax proportion without efforts to expand tax revenue is an irresponsible desk-bound legislation that undermines the financial foundation of autonomous districts."

The jointly taxed property tax system, implemented since 2008, is a system unique to Seoul where half of the property tax collected by each autonomous district is collected by the Seoul Metropolitan Government and then evenly redistributed to each district.

Although several proposals to increase the rate have been made with the intention of reducing revenue disparities among districts, none have passed the National Assembly's standing committee so far.

The district evaluates that increasing the jointly taxed property tax raises the dependence of autonomous districts on the city government, weakens their self-sustainability, leads to downward leveling, and hinders the development of local autonomy.

Since the implementation of the joint taxation system, Gangnam-gu has borne a financial loss exceeding 200 billion KRW annually, yet it is the only one among the 25 district offices that has never received the Seoul Metropolitan Government’s general adjustment grant.

Mayor Jeong Soon-gyun stated, "We can accept the current 50% joint taxation as support for the financial difficulties of northern districts, but anything beyond that is an unreasonable demand that threatens the existence of basic local governments. We will strongly oppose it in solidarity with other districts until the amendment is withdrawn."

Meanwhile, during the tenure of former Mayor Shin Yeon-hee, there was also strong opposition to the 50% jointly taxed property tax, but no significant changes occurred.

Also, among the 25 autonomous districts of Seoul, only Gangnam-gu and Seocho-gu are suffering damages due to the joint taxation, so it remains to be seen whether such opposition will gain traction.

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