Government scraps real estate price assessment plan

The government has announced its decision to abandon the plan to adjust the officially assessed prices of real estate to reflect market values. This plan, initiated in 2020 with the goal of gradually increasing state-assessed property values up to 90 percent of their market prices by 2030, has faced criticism for significantly raising the tax burden on the Korean people.

This initiative requires amendments to the Act on the Public Announcement of Real Estate Values, necessitating cooperation from opposition parties in the National Assembly for its passage. Instead, the government made a sudden announcement without a concrete implementation strategy, which is criticized for being “tax populism,” particularly as it was made just before the general election.

During the 21st public meeting held in Yeongdeungpo District, Seoul, with the theme “Miracle of Han River Built upon Urban Innovation,” President Yoon Suk Yeol criticized the previous administration for resorting to punitive taxation to counteract the housing price surge resulting from its own real estate policy failures. “Our government will completely abolish the hastily implemented plan to align declared prices with market values, ensuring that excessive taxes no longer burden the people,” President Yoon said.

Last year, the Ministry of Land, Infrastructure, and Transport announced a comprehensive review of the plan and promised to reveal the feasibility study results in November 2024. However, the recent announcement, made seven months ahead of schedule just before the general elections, indicates a departure from the original timeline. “The state-assessed property values may not exceed 69 percent of market prices, with the final figure to be determined by the feasibility study results in November,” a ministry official said.

President Yoon also pledged to revitalize urban spaces through extensive renovation projects in older parts of Seoul, including Yeongdengpo. These projects aim to refurbish aging residential buildings and reduce housing costs for working-class families and young people. The government plans to invest 10 trillion won over the next decade in the “New Village Project” to support these renovation initiatives.


김형민 기자 kalssam35@donga.com