"Am I Among the Wealthy 2%?"... A 60-Year-Old Woman's Lament Over the Comprehensive Real Estate Tax

"Receiving 900,000 Won Monthly Rent... How Does It Fall Within the Top 2% of the Nation?"

Photo by Cheongwadae National Petition Board screen capture.

[Asia Economy Reporter Heo Midam] This year, the number of taxpayers required to pay the comprehensive real estate holding tax (종합부동산세, 종부세) on residential properties has reached a record high of 947,000, sparking a flood of complaints from citizens. The government explained that "98% of the population do not receive 종부세 notices," but the controversy shows no signs of subsiding. On the Blue House's public petition board, petitions criticizing the government's 강화 of 종부세 have also been posted.

On the 29th of last month, a petition titled "Am I one of the wealthy 2% of the people?" was posted on the Blue House public petition board. As of 2 p.m. on the 1st, this petition had received over 3,220 endorsements.

The petitioner, who introduced herself as a 63-year-old grandmother, said, "I grew up in a poor family and always saw my parents worrying about making ends meet," and opened up by saying, "So I lived with the conviction that I must never pass down poverty to my children."

She continued, "I saved money by not eating expensive food or wearing expensive clothes, and by working so hard that frugality became second nature," adding, "Also, thinking about my old age and not wanting to be a burden to my children, I stubbornly saved and saved until I finally managed to buy two houses in Yongin-si, Gyeonggi-do, and now I have reached my age."

According to the petitioner, she and her husband currently live in one house for which they applied for a housing pension and receive 810,000 KRW per month, and from the other house, they receive 900,000 KRW in monthly rent. Together with their combined national pension of 1,000,000 KRW, they live on about 2.7 million KRW per month.

She said, "It's not abundant, but I lived modestly within my living expenses, taking joy in buying snacks for my grandchildren without being a burden to anyone," and lamented, "But suddenly last year, they told me to pay income tax on the rent income, and a few days ago, I received a notice demanding 1.1 million KRW in 종부세, which they say applies to only 2% of the people."

The petitioner complained, "Even though I have two houses, their combined official land price is 820 million KRW. That’s because the housing prices suddenly rose this year; until last year, the two houses combined were worth about 500 million KRW," and asked, "Am I really part of the wealthy 2% of the nation?"

Apartment complexes in the Gangnam area as seen from the Seoul Lotte World Tower Observatory. The photo is unrelated to specific expressions in the article. [Image source=Yonhap News]

She continued, "What money does an old person with no income have to pay property tax and income tax? Now they even want me to pay the 종부세, which I only heard about as a tax on the rich," and questioned, "There are many people living in houses worth 2 billion or 3 billion KRW on lease, but because they are tenants, even if they have two or three times more money than me, they don’t pay 종부세, do they?"

She said, "Why does it feel unfair? Is it a sin to have worked hard when I was young? Or is it a sin to have worked hard to be independent so as not to be a burden to my children?" and added, "If I were young enough to work or earn money, I might feel less unfair. But now, even if I want to do kitchen helper work, I’m rejected at interviews because of my age. Where am I supposed to earn money to pay taxes?"

Then, the petitioner mentioned "divorce" and "raising rent" as ways to solve the tax problem. She said, "There is a way (to pay 종부세). If the two old people split the houses and get divorced, it would be resolved cleanly," and criticized, "Have you ever thought that the government is not guaranteeing a happy old age but rather implementing policies that cause family breakdown?"

She also said, "Since the only source of money is the rent, we have no choice but to raise the rent accordingly. Who wouldn’t feel unfair then?" and added, "I also know very well how it feels because I started living in a rented room in someone else’s house when I was young, and I didn’t raise the rent for six years, but now I have no choice. To survive, I have no choice but to raise the rent this time, even if I don’t want to."

Finally, the petitioner concluded, "Am I really part of the 2% of the people? I hate this pitiful nickname. I want to hear a convincing answer about how I am included in the 2%," ending her post.

Meanwhile, the number of people receiving 종부세 notices this year is 947,000, an increase of 280,000 from last year. The total tax amount notified is 5.7 trillion KRW, up 3.9 trillion KRW from the previous year. The average payment per person is calculated at 6.01 million KRW, more than double the estimated 2.69 million KRW per person last year.

Regarding this, Lee Eokwon, the 1st Vice Minister of Strategy and Finance, emphasized at the Innovation Growth Strategy Review and Policy Review Meeting held on the 19th of last month, "98% of the people are unrelated to 종부세," and said, "There are exaggerated concerns about large 종부세 levies, but the clear fact is that about 98% of the entire population do not receive notices."

He added, "The tax burden on some high-priced single-home owners who pay 종부세 is also significantly eased according to the government’s measures to protect actual buyers," and stated, "We will continue to make every effort to stabilize the real estate market and help ordinary people own their homes."

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