"Housing Holding Tax to Reach 8.8 Trillion Won This Year... Expected to Rise by 1 Trillion Won from Last Year"

There are projections that this year’s housing holding tax revenue will increase by over 1 trillion won compared to last year.

According to data submitted by the National Assembly Budget Office to Assemblyman Lee Jongwook of the People Power Party, the housing holding tax for this year is estimated to total about 8.7803 trillion won. This is expected to increase by 1.1671 trillion won compared to the previously estimated 7.6132 trillion won for this year’s holding tax revenue.

The holding tax is divided into the national Comprehensive Real Estate Holding Tax and the local Property Tax. This year, the property tax on housing is expected to reach 7.2814 trillion won, an increase of 13.4% from last year, while the Comprehensive Real Estate Holding Tax is projected to be 1.499 trillion won, up 25.9%. Assemblyman Lee analyzed that the property tax per household will be 358,160 won, and the Comprehensive Real Estate Holding Tax per person will be 3,292,111 won.

Apartments in the Gangnam 3 Districts as seen from Lotte World Tower in Songpa-gu, Seoul. Photo by Yonhap News Agency

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By region, it is expected that in Seoul alone, tax revenue will increase by 995.9 billion won, accounting for most of the total increase. In Gyeonggi Province, the increase is estimated to be about 156 billion won. There are also regions such as Daegu, Gwangju, and Daejeon where tax revenue is expected to decrease.

These estimates are based on the number of housing units and taxable individuals in 2024, applying this year’s officially announced price change rates. The National Assembly Budget Office explained that property tax and Comprehensive Real Estate Holding Tax are subject to caps if they rise above certain thresholds, but this projection did not take those caps into account, so there is a possibility that the estimates are overstated.

On the other hand, Assemblyman Lee’s office believes that, due to the rise in officially announced prices, the number of people subject to the Comprehensive Real Estate Holding Tax will increase significantly, making it likely that actual tax revenue will increase even more. According to the Ministry of Land, Infrastructure and Transport’s announcement of this year’s officially assessed prices for apartment complexes, there are more than 480,000 apartment units with an officially assessed price exceeding 1.2 billion won, an increase of about 53% from last year.

Assemblyman Lee Jongwook said, “With 170,000 more people subject to the Comprehensive Real Estate Holding Tax this year, it is highly likely that the holding tax revenue will increase even more than the National Assembly Budget Office’s projection of 8.8 trillion won,” adding, “The president needs to present solutions on how to alleviate the tax burden and housing insecurity.”

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