This Year, 220,000 First-Generation Single-Homeowners Expected to Receive 240 Billion KRW in Comprehensive Real Estate Tax Notices

A citizen is looking at an apartment complex in the Songpa-gu area of Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Seongpil Cho] This year, 220,000 single-home households are expected to receive comprehensive real estate tax (Comprehensive Real Estate Holding Tax, 종부세) bills totaling approximately 240 billion KRW.

According to the Ministry of Economy and Finance on the 17th, the government estimated that about 220,000 single-home households will be issued 종부세 bills this year. This is 6.1 times the number of taxpayers in 2017 (36,000 people). The 종부세 amount borne by single-home households is also expected to increase from 15.1 billion KRW in 2017 to about 240 billion KRW this year. This means that many actual buyers without speculative intent will also have to bear a considerable 종부세 burden.

The total number of taxpayers subject to 종부세 on housing is expected to reach 1.2 million this year, surpassing 1 million for the first time in history. The 종부세 amount is expected to remain at around 4 trillion KRW, similar to last year when housing prices peaked.

The government explained, "Considering that since 2017, national income has risen by 12.8% and housing prices based on apartment sale prices in the Seoul metropolitan area have increased by 36.8%, the 종부세 burden has increased excessively in a short period." The government also emphasized, "Between 2019 and 2021, when 종부세 was strengthened, housing prices rose abnormally rapidly, and the number of households owning three or more homes actually increased," adding, "종부세 only increased the tax burden on citizens and was not effective in stabilizing real estate prices."