Regarding "Public Land Price Tax Bomb Report, Generalizing Gangnam Multi-Homeowners Cases"

"Reports of 'Tax Bomb from Official Land Prices Becoming Reality'... Not True"
Generalizing Special Cases of Multi-Homeowners and High-Value Property Owners in Gangnam
Tax Burden for Low and Middle-Income Groups Decreases... Deduction Rates Actually Expanded

Kim Tae-nyeon, Acting Leader of the Democratic Party of Korea, is delivering a greeting at the launch ceremony of the Labor Election Countermeasures Headquarters held at the National Assembly on the 16th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Koo Chae-eun] Kim Tae-nyeon, Acting Leader and Floor Leader of the Democratic Party of Korea, directly refuted the claim that "the tax bomb has become a reality due to the rise in official land prices," which was reported by some conservative media.

At the floor strategy meeting on the 16th, Kim said, "This generalizes special cases of multi-homeowners in the Gangnam area and exaggerates special cases of high-priced homes."

He added, "When the official prices of apartment complexes were announced in 2021 and the plan to realize official prices was established, the Democratic Party and the government also prepared and announced measures to ease the property tax burden." He explained that for 13.09 million households, which is 92.1% of the total, and 1.83 million households in Seoul, which is 70.6%, owning a single home priced under 600 million won, property taxes actually decreased. Kim also noted that the comprehensive real estate tax for long-term homeowners holding their homes for over five years receives a 50% deduction depending on the holding period, and when considering the combined limit, the deduction rate has expanded to 80%.

Kim said, "While the holding tax burden for high-priced multi-homeowners in Gangnam has increased, most apartment complexes have seen little change, and single-home households have actually experienced a decrease in tax burden," adding, "This is because the Local Tax Act was revised to prevent the property tax burden from increasing for low-income and middle-class citizens."

He explained that if the official land price is 600 million won, the market price would be around 850 million to 900 million won, and in this range, the property tax rate was lowered by 0.05 percentage points compared to last year. Kim emphasized, "The official real estate price is meant to efficiently reflect asset value for taxation, but it has been criticized for being detached from market prices," adding, "It is natural for them to be linked."

Kim concluded, "Our policy intention is firm to make taxation fair and equitable. The Democratic Party will consistently push forward the principle of protecting homeowners with a single residence who actually live in their homes."

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