[2020 National Audit] Seoul City "If Seocho-gu Property Tax Reduction is Enforced, Considering Supreme Court Lawsuit and Suspension of Execution Application"

[Asia Economy Reporter Yuri Kim] The Seoul Metropolitan Government announced that it is considering filing a lawsuit with the Supreme Court or applying for a suspension of execution if the ordinance on property tax reduction in Seocho-gu is forcibly promulgated.

On the 20th, Kang Jun-hyun, a member of the National Assembly Land, Infrastructure and Transport Committee from the Democratic Party of Korea, questioned the Seoul Metropolitan Government's response measures during the Seoul City audit held at Seoul City Hall, stating, "The ordinance by Seocho-gu to reduce property tax for single households with one house valued under 900 million won creates a tax base bracket not present in the Local Tax Act, thus violating the principle of taxation by law."

Seo Jeong-hyeop, Acting Mayor of Seoul, said, "(The property tax reduction ordinance of Seocho-gu) fundamentally violates the law and raises fairness issues among Seoul's 25 autonomous districts, so a request for reconsideration was made," adding, "If Seocho-gu continues to insist, we are considering filing a lawsuit with the Supreme Court or applying for a suspension of execution." He further stated, "I believe it is undesirable to enact policies for specific districts by violating the law."

Earlier, Cho Eun-hee, Mayor of Seocho-gu, based on the Local Tax Act provision that allows local government heads to reduce property tax by 50% in disaster situations, judged the COVID-19 pandemic as a disaster situation and pursued a plan to reduce 50% of the property tax portion for the autonomous district (25% of the total property tax) for single households with one house valued under 900 million won. The Seocho-gu Council approved this ordinance on the 25th of last month, but it has not yet been promulgated.