Korea and France are in diplomatic discord over the so-called comprehensive real estate tax, a device introduced by the Korean government to curb property speculation. According to the Foreign Ministry, the French Embassy in Seoul complained about comprehensive real estate tax of W60 million (US$1=W927) slapped on 13 residences for its staff. The Embassy refuses to pay the tax, saying there is no such special-purposed tax in France and the homes have nothing to do with speculative real estate investment.

Under the Vienna Convention on Diplomatic Relations, consular premises are tax-exempt and many nations exempt tax for residences of staff too. But Korea and France are an exception. A National tax service official said Korea taxes staff residences owned by the French Embassy because France taxes property owned by the Korean government there.

Sensing the firm stance of the Korean tax authorities, France recently asked for a reduction in the comprehensive real estate tax. While the NTS is reluctant, the Foreign Ministry seems confused, saying each related department has different views. A French Embassy spokesman declined to comment.

(englishnews@chosun.com )