Opposition's Park Seong-jun Proposes Bill to Raise Comprehensive Real Estate Tax Threshold to 1.5 Billion Won

Democratic Party Rep. Park Seong-jun
Proposes Bill to Raise Comprehensive Real Estate Tax Threshold
from 1.4 Billion to 1.5 Billion Won
Includes Elderly Tax Deferral System

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] On the 19th, Park Sung-jun, a member of the Democratic Party of Korea, took the lead in proposing a partial amendment to the Comprehensive Real Estate Tax Act that raises the tax base for the comprehensive real estate tax (종부세) on first-generation single-homeowners from 1.1 billion KRW to 1.5 billion KRW and allows seniors aged 60 or older with one household and one home to defer payment until inheritance or donation.

According to the amendment, the additional deduction amount for first-generation single-homeowners when calculating the tax base for the comprehensive real estate tax will be increased from 500 million KRW to 900 million KRW, and the tax base for one household with one home will be changed to 1.5 billion KRW. With the 2022 official price realization rate at 71.5%, raising the tax base to 1.5 billion KRW exempts comprehensive real estate tax for homes valued up to approximately 2 billion KRW in market price.

The bill also includes a provision to reduce the burden by allowing seniors aged 60 or older with a tax base under 300 million KRW and one household with one home to defer payment until the time of sale, donation, or inheritance of the relevant home.

Rep. Park said, “While incomes have not increased, the burden on citizens due to the imposition of the comprehensive real estate tax has increased as real estate prices have skyrocketed,” adding, “Except for ultra-high-priced homes that far exceed 2 billion KRW in market price, we will effectively abolish the comprehensive real estate tax for single-homeowners to reduce the tax burden on the middle and lower classes.”

Rep. Park emphasized, “The payment deferral system for the elderly is essential to ensure housing stability and basic living for the elderly,” and stated, “We will continue to take the lead in actively promoting institutional improvements and burden relief policies for ordinary citizens suffering from high inflation, high interest rates, and high exchange rates.” The co-sponsors of this amendment include Rep. Lee Yong-bin, Yang Hyang-ja, Lee Soo-jin, Min Hyung-bae, Jung Il-young, Jung Tae-ho, Choi In-ho, Hong Sung-guk, and Heo Jong-sik.

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