Yoo Kyung-jun "If Lee Jae-myung Introduces Land Ownership Tax, Corporate Tax Burden Could Reach Up to 29 Trillion Won"

Education, Welfare, and Medical Facilities Expected to Bear Around 10 Trillion Won
60.2% of Seoul Residents Must Pay More Taxes Than Basic Income from National Land Holding Tax

[Asia Economy Reporter Naju-seok] An analysis has emerged suggesting that if the 'Land Holding Tax' proposed by Lee Jae-myung, the Democratic Party of Korea's presidential candidate, is introduced, the corporate tax burden could reach up to 29 trillion won. In Seoul, it is expected that more than 1.6 million homeowners, accounting for over half of the housing owners, will bear taxes exceeding the basic income from the Land Holding Tax.

According to the analysis of the 'Corporate Burden Scale of the Land Holding Tax' by Yoo Kyung-jun, head of the Real Estate Public Price Center of the People Power Party, the tax burden on corporations is estimated to reach between 19 trillion and 26 trillion won if the Land Holding Tax is introduced. Considering that property taxes related to land ownership have been around 3 trillion won, the total tax burden would increase by nearly 30 trillion won.

Previously, candidate Lee proposed replacing the comprehensive real estate tax with the Land Holding Tax and using the income generated from it to provide basic income. The tax would be imposed on land rather than housing, and the land portion of the property tax would be exempted.

Based on 2020 data, corporations paid 3.0142 trillion won in property taxes and 2.0335 trillion won in comprehensive real estate taxes. If the comprehensive real estate tax is restructured into the Land Holding Tax as per the candidate's pledge, corporations would bear both property tax and the comprehensive real estate tax burdens consecutively.

Even educational, welfare, and medical facilities that currently receive exemptions or reductions on property taxes would face increased tax burdens under the Land Holding Tax. Currently, these facilities pay 1.5323 trillion won in property taxes due to exemptions and reductions, but with the Land Holding Tax imposed, they would have to pay about 10 trillion won in addition to property taxes. In the case of farmland, which has been subject to a reduced tax rate equivalent to one-third of the property tax and paid 423.1 billion won, the introduction of the Land Holding Tax would require an additional 9.5066 trillion won on top of property taxes.

Furthermore, 60.2% of homeowners in Seoul are expected to face a tax burden greater than the basic income from the Land Holding Tax. Regarding this, Representative Yoo stated, "This differs from candidate Lee's explanation that 90% of the entire population would be beneficiaries," adding, "The Land Holding Tax can be seen as a more heavily weighted punitive tax system than the comprehensive real estate tax."

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