Trying to Donate Land Worth 1.5 Billion Won, But Asked to Pay "16 Million Won"... Giving Up Due to 'Acquisition Tax'

Close to residential areas, increasing usability
Must pay 16 million won even when donating land
Area of about 13,000㎡, equivalent to two soccer fields

The family of a resident in Haeundae-gu, Busan, gave up on donating land equivalent to the size of two soccer fields to Haeundae-gu due to acquisition tax issues, despite the deceased's wishes.

According to Haeundae-gu, Busan, on the 25th, the family of resident A recently withdrew their intention to donate about 13,000㎡ of forest land in Banyeo-dong, San153 and San205-1 areas of Haeundae-gu.

A bereaved family member of a resident in Haeundae-gu, Busan, attempted to donate a piece of land equivalent to the size of two soccer fields to Haeundae-gu in accordance with the deceased's wishes but gave up due to acquisition tax issues.
[Photo by Haeundae-gu]

It is known that the withdrawal was due to acquisition tax of about 16 million KRW. The family of A began discussions with Haeundae-gu regarding the donation of the land since December last year.

The land has an official land price of about 500 million KRW and is said to have a market value of approximately 1.5 billion KRW. Being close to residential areas, it appeared to have high utility as a resting place for residents within the city. The Haeundae-gu office had even made specific plans to use San153 in Banyeo-dong as a walking trail and San205-1 as a resting area for residents.

However, the main reason the family withdrew the donation was due to the acquisition tax. According to relevant laws, the family had to pay about 16 million KRW in taxes before donating the land.

If the donation had been processed while the deceased was alive, this acquisition tax issue would not have occurred. However, since the land was inherited by the family after the deceased passed away, they had to pay the acquisition tax before donating it.

In response, Haeundae-gu reviewed the Local Tax Act, the Restriction of Special Local Taxation Act, and cases of inquiries to the Ministry of the Interior and Safety. However, it was determined that acquisition tax exemption was not possible. Even though the land worth about 1.5 billion KRW is being donated without any compensation, the donor must still pay the tax.

A Haeundae-gu official said, "The land has very high utility, so it is regrettable," and added, "We will propose amendments to the laws to the Ministry of the Interior and Safety."

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