South Korea’s proposed comprehensive real estate tax adjustments face mounting pushback from civic groups, academics, and opposition lawmakers who argue that raising the basic deduction threshold for single-home owners amounts to a tax cut for wealthy asset holders. According to the progressive civic organization People’s Solidarity for Participatory Democracy (PSPD), the government’s plan to lift the comprehensive real estate holding tax (often known as the Jongbu tax) basic deduction from 공시가격 12억원 to 14억원 shields high-value property owners from appropriate taxation.
Scope of Proposed Tax Relief and Impact on High-Value Districts
According to an analysis by the 나라살림연구소 cited by PSPD, raising the basic deduction to 14억원 would exempt approximately 7만5천803호 homes nationwide from the tax, including 5만6천870호 properties in Seoul. The policy shift concentrates its tax relief heavily in high-priced housing markets. Data indicates that the heaviest reductions in tax targets will occur across the “Han River belt” districts, which include Gangdong, Mapo, Dongjak, and Seongdong, where property values surged in recent years.
Critics contend that under the revised threshold, residences valued at up to 약 20억원 could escape the Jongbu tax entirely. PSPD and allied researchers argue this adjustment undermines the original function of the holding tax by using broad ownership status exemptions rather than focusing squarely on asset value and the taxpayer’s actual ability to pay.
Joint Press Conference Organized by Lawmakers and Academics
To contest the reform package, PSPD scheduled a joint press conference at the National Assembly Communication Hall alongside housing and tax civic organizations, academic researchers, and opposition lawmakers. Scheduled speakers include lawmakers Cha Gyu-keun, Kim Sun-min, and Hwang Un-ha of the Rebuilding Korea Party, Han Chang-min of the Social Democratic Party, Yong Hye-in of the Basic Income Party, and Jeong Hye-kyung of the Progressive Party.
The press conference will be moderated by Kim Eun-jung, cooperative secretary-general of PSPD.
Demands for Wealth-Based Taxation Principles
In addition to opposing the 14억원 deduction cap, participating groups cautioned against parallel ruling party discussions seeking to eliminate residency status distinctions for single-home owners. While acknowledging flaws in the current uniform classification of resident versus non-resident taxpayers, the coalition warned that administrative fixes should not serve as a backdoor for extra tax privileges on high-end real estate.
The coalition demands that the government and the National Assembly scrap the 14억원 exemption plan and abandon targeted exceptions based strictly on headcounts or occupancy. Instead, the organizations urge authorities to anchor property holding taxes firmly to the intrinsic value of held assets and true taxpayer capacity.