Deadline for Objections to Official Property Prices Today... Record High Expected Amid Continuous Complaints

Over 56,355 Cases Expected in 2007
Five Districts Reach 5,000 Cases by End of March
Local Governments Also Raise Concerns "There Is a Problem"

[Asia Economy Reporters Kangwook Cho, Hyemin Kim] Protests are pouring in over the official apartment prices, which recorded the highest increase in 14 years with an average rise of 19.08%. Local governments such as Jeju Province and Seocho District Office, opposing the sharp rise in official prices, have decided to hold a joint press conference, and major local cities including Sejong are preparing collective objections. The market widely expects that the number of objections to the official prices, which closes today, will set a record high.

According to the Ministry of Land, Infrastructure and Transport and the real estate industry on the 5th, the number of objections filed for the official prices of 14,205,075 nationwide apartment households, which closes today, is expected to exceed 56,355 cases, the highest ever recorded in 2007. Last year, a total of 37,410 opinions were submitted during the official apartment price viewing period. However, this year is different. The nationwide average official apartment price increase rate this year is 19.08%, more than three times last year’s increase rate of 5.98%.

Professor Daejung Kwon of Myongji University’s Department of Real Estate said, "Rubber band official prices that rise sharply when prices go up and fall when prices go down only cause confusion," adding, "Official prices affect more than 60 areas including property tax, health insurance, and basic pension calculations, so this year will see an unprecedented number of objections."

In the Gangnam area of Seoul, residents of Eunma Apartment in Daechi-dong, Gangnam-gu, and Yeoksam 2nd I-Park in Yeoksam-dong gathered opinions opposing the increase in official prices. Hanshin Royal Apartment in Jamwon-dong, Seocho-gu, collected signatures on a petition until the day before and plans to submit an opinion letter today. The Union of Resident Representatives of five nearby complexes including Godeok Gracium and Godeok Arteon in Godeok-dong and Sangil-dong, Gangdong-gu, raised objections to the Ministry of Land, Infrastructure and Transport and Gangdong District Office regarding unfair official price increases.

The same applies to the Gangbuk area. This is because the areas with the highest official price increases in Seoul are concentrated in Nowon-gu (34.66%) and Seongbuk-gu (28.01%). Most complexes have posted petitions to submit collective opinions to the government, and collective objections have been filed for Raemian Gireum Centerpiece in Seongbuk-gu and Central I-Park in Hongje-dong, Seodaemun-gu.

Local governments are also raising their voices, saying there are "problems" with the government's official price calculations. Jeju Governor Won Hee-ryong and Seocho District Mayor Cho Eun-hee will hold a joint press conference at the People Power Party Central Party Office in Yeongdeungpo-gu, Seoul, this afternoon. Governor Won and Mayor Cho plan to urge the government to normalize the unfair official prices through presentations of error cases and joint government proposals. In Sejong City, which recorded the highest nationwide increase rate of 70.68%, Mayor Lee Chun-hee personally requested the Ministry of Land, Infrastructure and Transport and others to lower the official prices. This year, the number of apartments subject to comprehensive real estate tax in Sejong City priced at 900 million KRW or more is 1,760 households, about 70 times more than one year ago (25 households).

In fact, the Seoul Gangnam branch of the Korea Real Estate Board, which oversees five districts including Gangnam, Seocho, Songpa, Gangdong, and Dongjak, received about 5,000 objections by the end of last month. Sejong City also received more than 2,000 objections during this period, more than 20 times last year’s (about 100 cases). The number of signatures on national petitions opposing the official price increase has exceeded 20,000.

The Ministry of Land, Infrastructure and Transport officially maintains that there is no problem with the official price calculations. A ministry official said, "Among the cases cited as official price errors, we judge that there are no actual problems," adding, "We plan to review the submitted opinions and decide and announce the official prices on the 29th."