Gangnam-gu Mayor Jeong Soon-gyun Proposes Raising High-Value Housing Standard from 900 Million to 1.2 Billion Won

60% of Gangnam Apartments Exceed 900 Million Won... 13 Years Unchanged 'Official Price 900 Million Won Standard'... High-Value Housing Standard Realized... Property Special Tax Standard Also Relaxed to 900 Million Won

[Asia Economy Reporter Jongil Park] Gangnam-gu (District Mayor Jeong Soon-gyun) proposed to the Ministry of Strategy and Finance on the 29th to relax the comprehensive real estate tax (종부세) threshold for one household one house from 900 million KRW to 1.2 billion KRW.

Despite the recent sharp rise in the publicly announced prices of apartments and other multi-family housing, the '900 million KRW public price standard,' which has remained unchanged for 13 years, does not properly reflect market conditions, leading to continuous calls for the adjustment of the high-priced housing standard.

The current 종부세 imposition standard of 900 million KRW has been the criterion for distinguishing high-priced housing since 2008, and the government imposes various taxes based on this.

The district also proposed to the Ministry of the Interior and Safety a new tax system applying the same deduction rate for property tax only to one-house owners aged 60 or older among 종부세 taxpayers.

This is because the rise in public prices is imposing excessive holding tax burdens even on low-income elderly people such as pensioners.

They also suggested raising the special tax rate standard applied to properties with a public price of 600 million KRW or less to 900 million KRW to the Ministry of the Interior and Safety. Although the government stipulated at the end of last year to reduce the property tax special rate by 0.05 percentage points for one-house owners with a public price of 600 million KRW or less, the rapid increase in public prices means they are not receiving substantial benefits, causing a surge in requests for relaxation.

Looking at the trend of housing price changes in Gangnam-gu, houses priced over 900 million KRW increased by 71.2% over four years (compared to 2018) to 98,420 households. This accounts for 58.1% of all houses in the area.

District Mayor Jeong Soon-gyun said, “As the tax burden on one household one house has increased due to the rapid rise in public prices, it is necessary to supplement the system to alleviate this. We proposed this because we judged that for one-house owners, a certain portion of reduction should be given according to age, holding period, and income level.”

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