Record Numbers of Homeowners Slapped with Punitive Tax

  • By Jung Seok-woo

    November 25, 2021 11:20

    More than 1 million people have been slapped with the comprehensive real estate tax this year for the first time since the punitive tax was introduced in 2005.

    The tax is levied on owners of more than one home or high-value homes priced over W1.1 billion as well as commercial property and land (US$1=W1,188).

    The National Tax Service said Wednesday that another 79,600 people have been charged a total of W2.89 trillion in comprehensive real estate tax for commercial property and land.

    /Yonhap

    That adds to 947,000 homeowners who were slapped with the punitive tax earlier this week and brings the total to 1.03 million, up a whopping 38 percent from last year as property values spiraled out of control.

    This means a full two percent of the population and 4.4 percent of all households were charged comprehensive real estate tax.

    The total tax revenue comes to W8.57 trillion, up two-fold from last year. The taxation rate rose from 69 percent to 70.2 percent of a property's listed value this year, and residential property values have soared as a result of the government's failed real estate policies. 

    Comprehensive real estate tax levied on homes surged by W3.9 trillion this year, while tax on commercial property and land increased by W435.3 billion. 

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