Real Estate Transfer Tax to Be Used as Funding for Overcoming Low Birthrate... Approximately 1 Trillion Won Scale

Ministry of the Interior and Safety Announces Legislative Notice for Amendment of Local Allocation Tax Act Enforcement Decree
Reducing Social Welfare by 15% and Shifting 10% to Local Education
Approximately 1 Trillion Won Expected for Birthrate Response Grants This Year

The government will utilize 25% of the real estate grant tax as a resource to address low birth rates. Until now, the real estate grant tax has been allocated with a focus on supporting balanced regional development, but it is now expected to become a key resource for overcoming the national population crisis.

On the 29th, the Ministry of the Interior and Safety announced that it will publicly notify the "Partial Amendment to the Enforcement Decree of the Local Grant Tax Act," which includes the establishment of a grant standard for responding to low birth rates in the real estate grant tax, starting from the 30th of this month.

The core of the amendment is to reduce the current real estate grant tax allocation for the 'social welfare' sector from 35% to 20%, and to convert the 10% allocated to 'regional education' into 'low birth rate response,' thereby utilizing a total of 25% as resources to overcome the local population crisis. The Ministry of the Interior and Safety expects that through the amendment of the enforcement decree, local governments at the forefront of population issues will actively discover projects to respond to low birth rates and boldly invest financial resources.

The scale of the real estate grant tax resources in 2024 is 4.1 trillion won, of which about 1 trillion won, or 25%, will be used as resources for low birth rate response. Local governments that actively promote projects addressing childbirth, parenting, and care in response to low birth rates will be able to receive more real estate grant tax in the future. In the mid to long term, local governments utilizing these resources may also implement various low birth rate response projects tailored to the characteristics of their regions.

The Ministry of the Interior and Safety plans to reflect various opinions from the public and related stakeholders during the public notification period. Deputy Minister Ko Gi-dong of the Ministry of the Interior and Safety said, "The population crisis is an issue that requires the national government and local governments to unite and pool all available resources to respond." He added, "With this improvement in the real estate grant tax, the resources for local governments to respond to low birth rates will be expanded, and we hope that highly perceptible low birth rate projects suited to each region will be promoted."

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