As Comprehensive Real Estate Tax Burden Increases, Delinquent Payments Also Rise... Doubled in One Year

Arrears of Comprehensive Real Estate Tax Increase from 280 Billion to 562.8 Billion
Daejeon ＞ Incheon ＞ Gwangju Order
Kim Sang-hoon, People Power Party Lawmaker, "100% Increase in One Year, Abnormal Situation"

[Asia Economy Reporter Kim Hyemin] The annual outstanding amount of comprehensive real estate tax (종부세) arrears has exceeded 500 billion won, more than doubling within a year. This increase is due to a rise in cases of delayed payments following the 종부세 hike.

According to the 2017-2021 종부세 payment status data submitted by the Ministry of Economy and Finance and the National Tax Service to Kim Sang-hoon, a member of the People Power Party, the amount of 종부세 arrears imposed last year was 562.8 billion won, a 101% increase compared to the previous year (about 280 billion won).

The average arrears per defaulter increased by 78%, from about 3.2 million won to about 5.7 million won during the same period. The number of arrears cases also rose by 12,432, from 86,825 to 99,257.

The Moon Jae-in administration strengthened property holding taxes to curb speculation, resulting in the number of 종부세 taxpayers increasing from 667,000 to 947,000 last year. The tax revenue from 종부세 also surged by 216%, from 1.8 trillion won to 5.7 trillion won. The average tax amount per person rose from 2.69 million won to 6.01 million won.

The increase in arrears is expanding nationwide. The region with the largest increase in arrears is Daejeon, where the Daejeon tax office saw arrears jump 236.6%, from 11.2 billion won to 37.7 billion won. This was the largest increase among the seven regional national tax offices. Incheon also experienced a 224.9% increase, from 20.5 billion won to 66.6 billion won. Following were Gwangju (196.8%), Daegu (176%), Busan (169.7%), and Jungbu (157.9%), all more than doubling. Seoul saw a 36.4% increase, but its arrears amount was the highest at 212.6 billion won.

Assemblyman Kim said, "It is an abnormal situation for arrears to increase by more than 100% in just one year," adding, "The previous government's policy failure has resulted in a burden on the people." He continued, "Discussions in the National Assembly on special exemptions for 종부세 should be resumed to restore taxpayers' ability to pay," and added, "We also expect the Yoon Seok-yeol administration to prepare measures to enhance tax predictability."