Comprehensive Real Estate Tax Plan Will Be Announced Today If Early

Starting from next year, a new plan for a comprehensive real estate tax, which adds up housing and land values respectively, and imposes graduated taxation in case of more than a certain amounts, will be propelled. A “new deal for a comprehensive investment plan” will also be fully launched in order to activate the construction cycle and boost the economy in the second half of next year.

Deputy Prime Minister and Minister of Finance and Economy Lee Hun-jae said at a policy conference with the press on October 29 that “we plan to announce a reorganization plan for real estate taxes after a government and party consultative conference on November 1.”

This new reorganization plan includes the introduction of a comprehensive real estate tax, a reorganization plan for purchase and registration taxes, which comprise the whole of real estate taxes.

It appears that a comprehensive real estate tax, which adds up each individual’s housing price and imposes a graduated taxation scale on housing with certain amounts of money, will be introduced starting from next year as scheduled. In this case, the tax burden of those who possess lots of real estate will increase.

Deputy Prime Minister Lee implied the additional deregulation of speculation areas by saying that “there is no change in our position that a policy of speculation deregulation should not damage transactions on the market. The Ministry of Construction and Transportation is examining an additional plan to deregulate speculation areas, and the results will be announced during next week.”

Yong Park parky@donga.com