More Multiple-Home Owners Slapped with Punitive Tax

  • By Kim Jung-hoon

    November 23, 2021 12:03

    A total of 947,000 people in Korea have been slapped with the comprehensive real estate tax that is intended to discourage property speculation, up 42 percent from last year, the Ministry of Economy and Finance said Monday.

    That is three times more than in 2017, when President Moon Jae-in took office and began his disastrous real estate policies.

    The government stands to collect W5.7 trillion in comprehensive real estate tax, which is levied on anyone who owns more than one home or a high-value home exceeding W1.1 billion (US$1=W1,187). That is 3.2 times more than last year and a whopping 14.7 times more than W387.8 billion in 2017.

    /Yonhap

    Failed real estate policies caused residential property prices to surge, which in turn jacked up the tax rate. The per-capita comprehensive real estate tax came to W6.02 million, up from W2.7 million in 2020.

    The ministry said most of those who have been charged the tax are multiple-home owners (485,000) and businesses (62,000).

    But it insisted the tax is fair. "Ninety-eight percent of the public are not subject to comprehensive real estate tax payments." But critics point out that the bulk of the tax burden lies on homeowners in the Seoul metropolitan area, where property prices have spiraled out of control as an unintended result of government policies.

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