Gangnam-gu Mayor Jeong Soon-gyun Sends Letter Urging Withdrawal of Property Tax Joint Taxation Increase (50→60%)

Jung District Mayor: "60% Increase Without Effort to Expand Tax Revenue, Infringement on Local Fiscal Autonomy"... Requests Cooperation from National Assembly, Prime Minister's Office, and Ministry of the Interior

[Asia Economy Reporter Park Jong-il] Jung Soon-gyun, Mayor of Gangnam District, sent a letter on the 31st urging the withdrawal of the recently proposed amendment to the Local Tax Basic Act in the National Assembly, which aims to increase the proportion of jointly taxed property tax from the current 50% to 60%. The letter was sent to both ruling and opposition party members' offices, the Prime Minister's Office, and the Ministry of the Interior and Safety.

Mayor Jung stated, "For the past 40 years, Gangnam District has accepted the 50% joint taxation rate as a way to return the benefits it has received from the nation and society back to the community," adding, "However, raising the joint taxation rate to 60% without efforts to expand tax revenue disregards the reality of Gangnam and infringes on local fiscal autonomy," and requested cooperation for the withdrawal of the legislation.

Since 2008, the joint property tax system, implemented only in Seoul, is designed to reduce revenue disparities among autonomous districts by having Seoul collect half of the property tax collected by each district and then redistribute it evenly among the districts.

Gangnam District has contributed more than 200 billion KRW annually as resources for other districts through the joint taxation system, yet it is the only one among the 25 districts that has never received adjustment grants from Seoul City.

Regarding the increase in the joint taxation rate, Mayor Jung emphasized, "Increasing the dependence of autonomous districts on Seoul City will reduce their self-sufficiency and lead to downward leveling, ultimately hindering the development and maturity of local autonomy," urging the withdrawal of the amendment for the advancement of grassroots democracy.

This letter was sent to officials at the Prime Minister's Office, the Minister and Vice Minister offices of the Ministry of the Interior and Safety, all 300 members of the National Assembly from both ruling and opposition parties, and the office of the Democratic Party leader.

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Dear Honorable ○○○ Member of the National Assembly,

Hello, I am Jung Soon-gyun, Mayor of Gangnam District, Seoul.

I am writing to request your cooperation in withdrawing the recently proposed partial amendment to the Local Tax Basic Act in the National Assembly, which aims to raise the joint property tax rate from the current 50% to 60%.

The joint property tax system, implemented only in Seoul since 2008, is designed to reduce financial disparities among the 25 autonomous districts by having Seoul jointly manage half of the property tax collected by each district and distribute it evenly to all districts.

While Seoul provides adjustment grants (22.6% of the city's general tax) to districts experiencing a decrease in property tax revenue, Gangnam District, which contributes over 200 billion KRW annually as resources for other districts, neither receives adjustment grants nor equal subsidies.

Despite this reality, Gangnam District and its residents agree with the central government and Seoul City's goal of balanced development among the 25 districts. We also recognize the special investments and considerations the government has made for Gangnam's development as Korea's representative and leading city. For over 40 years, Gangnam has accepted the 50% joint taxation rate as a way to return the benefits received from the nation and society back to the community.

However, I must express that raising the joint property tax rate to 60% without efforts to expand tax revenue disregards the reality of Gangnam as a basic local government and excessively infringes on local fiscal autonomy.

Increasing the joint property tax rate without setting a direction aligned with the purpose of reducing financial disparities among districts and without system improvements cannot be a fundamental solution.

Rather, it will increase districts' dependence on Seoul City, reduce their self-sufficiency, lead to downward leveling, and ultimately hinder the development and maturity of local autonomy.

Therefore, Gangnam District earnestly requests your active cooperation in withdrawing the partial amendment to the Local Tax Basic Act, which undermines the development of grassroots democracy and the securing of fiscal autonomy for basic local governments.

Wishing you a prosperous New Year.

December 2020

Sincerely, Jung Soon-gyun, Mayor of Gangnam District

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