Democratic Party, Property Tax Reduction... 440,000 Households with 600M-900M KRW, Average 180,000 KRW Each

Yoon Ho-jung, the floor leader of the Democratic Party of Korea, and Kim Jin-pyo, the chairman of the Real Estate Special Committee, are attending and conversing at the policy members' meeting on real estate held at the National Assembly on the 27th. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Park Cheol-eung] The Democratic Party of Korea has finalized a plan to apply a property tax reduction rate of 0.05 percentage points to the official property price range of 600 million to 900 million KRW. It is expected to benefit 440,000 households with an average effect of 180,000 KRW per house.

The Democratic Party's Special Committee on Real Estate announced this improvement plan immediately after the policy members' meeting on the 27th. This is a further relaxation about six months after announcing the property tax reduction plan last November. The property tax assessment date is next month on the 1st. The tax rate for houses priced between 600 million and 900 million KRW will be lowered from 0.4% to 0.35%.

The special committee explained, "As the official property prices have risen sharply, it has become necessary to expand the scope of property tax rate reductions for single-homeowners," adding, "Many houses priced under 600 million KRW that could apply the special tax rate last year were excluded due to price increases."

The number of multi-family houses in the 600 million to 900 million KRW price range increased from 373,000 nationwide last year to 592,000 this year. Among the 13.12 million multi-family houses priced under 600 million KRW last year, 395,000 houses (3.0%) exceeded 600 million KRW this year.

The target number of houses is 440,000, with a total reduction amount of 78.2 billion KRW, averaging 180,000 KRW per house.

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