Comprehensive Real Estate Tax Targeting Not Only Single-Homeowners but Also Provinces... Number of Taxpayers Tripled in Sejong and Doubled in Busan

2021 Housing Comprehensive Real Estate Holding Tax Notification Status by City and Province
Number of Taxpayers Greatly Increased in All 17 Cities and Provinces
Sejong City Nearly Tripled, Ranking First... Busan Doubled from 23,000 to 46,000
Chungnam, Jeonbuk, Jeonnam, Ulsan, and Gyeongnam Also Doubled
Chungbuk Tax Amount Rose Nearly Ninefold from 8 Billion to 70.7 Billion KRW

On the 22nd, when the National Tax Service began sending comprehensive real estate tax notices, an apartment complex in the Yeouido area was viewed from the observatory of 63 Square in Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

[Sejong=Asia Economy Reporter Kim Hyunjung] Due to the rise in real estate prices and the government's efforts to reflect actual market prices in official assessments, the number of taxpayers liable for the comprehensive real estate holding tax (종합부동산세) has significantly increased not only in Seoul and the metropolitan area but also across all 17 cities and provinces nationwide. The number of taxpayers notified in Sejong City, where real estate prices have recently surged, nearly tripled, and in Chungbuk, which was considered a relatively unpopular region, the notified tax amount increased about ninefold.

On the 23rd, the National Tax Service announced the '2021 Housing Comprehensive Real Estate Holding Tax Notification Status by City and Province.' Based on the number of taxpayers notified, Sejong City saw the largest increase nationwide, rising from 4,000 last year to 11,000 this year, an increase of 7,000 (175%). The comprehensive real estate holding tax notified in Sejong City also jumped from 4.4 billion KRW to 25.9 billion KRW during the same period, an increase of 21.5 billion KRW (488.6%).

Other regions where the number of taxpayers receiving notifications doubled (100% increase) or more appeared nationwide. Chungnam increased from 7,000 to 14,000, Jeonbuk from 4,000 to 9,000, Jeonnam and Ulsan each from 4,000 to 8,000, Busan from 23,000 to 46,000, and Gyeongnam from 8,000 to 16,000.

Based on the notified tax amount, Seoul and Gyeonggi were followed by Gyeongnam and Busan with the largest increases. In Gyeongnam, the notified amount rose from 108.9 billion KRW last year to 429.3 billion KRW this year, an increase of 320.4 billion KRW (294.2%). In Busan, the amount increased from 45.4 billion KRW to 256.1 billion KRW (464.1%) during the same period.

The region with the highest tax increase rate was Chungbuk, which has been considered a relatively unpopular real estate area. The amount surged from 8 billion KRW to 70.7 billion KRW, an increase of 62.7 billion KRW (783.8%).

During the same period, although the increase in the number of taxpayers and tax amounts in Seoul and Gyeonggi was relatively moderate, the absolute figures were overwhelming. The number of taxpayers notified in Seoul, which was about 393,000 last year, rose by 87,000 (22.1%) to reach 480,000 this year, and the notified tax amount surged from 1.1868 trillion KRW to 2.7766 trillion KRW, an increase of 1.5898 trillion KRW (134.0%). In Gyeonggi, the number of taxpayers increased from 147,000 to 238,000, a rise of 91,000 (61.9%), and the notified tax amount grew from 260.6 billion KRW to 1.1689 trillion KRW, an increase of 908.3 billion KRW (348.5%). Seoul accounted for 50.6% and Gyeonggi 25.1% of the total notified taxpayers (947,000). Based on the notified tax amount, Seoul held 48.9% and Gyeonggi 20.6% of the total (5.6789 trillion KRW).

The comprehensive real estate holding tax is levied on individuals who own houses and land subject to property tax in Korea as of the tax base date (June 1 every year). Since the Moon Jae-in administration, with the rapid rise in real estate prices and simultaneous increases in the comprehensive real estate holding tax rate, fair market value ratio, and official price realization ratio, the number of taxpayers and the tax amount nationwide have surged.

Meanwhile, the National Tax Service began sending out this year's comprehensive real estate holding tax notifications from the 22nd. They can be viewed on Hometax starting from the 22nd and are expected to be received by mail around the 24th to 25th. The filing and payment period for the comprehensive real estate holding tax is from the 1st to the 15th of next month.