Choo Kyung-ho: "Apartment Official Prices Down 18.6%... Tax Burden Lower Than in 2020"

The 5th Real Estate Ministers' Meeting

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho announced on the 22nd that "this year's official price of apartment complexes fell by 18.6% compared to the previous year, the largest drop since the system was introduced in 2005."

Deputy Prime Minister Choo made this remark while presiding over the 5th Real Estate Related Ministers' Meeting at the Government Seoul Office on the same day.

Choo explained, "Since the launch of the Yoon Suk-yeol administration, we have been making every effort to stabilize the real estate market, while focusing policy efforts on normalizing irrational systems that caused excessive burdens on the public. Due to the government's market stabilization efforts and the impact of interest rate hikes, housing prices generally declined last year, and the market price reflection ratio applied in calculating the official price was lowered by 2.5 percentage points from 71.5% in 2022 to 69.0% in 2023."

As the official price falls, the tax burden on citizens will decrease. Deputy Prime Minister Choo said, "Due to the decline in official prices, the burden of holding taxes this year is expected to decrease significantly compared to last year and even fall below the 2020 level. Not only the tax burden but also various public burdens calculated based on the official price will be greatly alleviated."

For regional subscribers of health insurance, premiums are determined by individual income and property. The Ministry of Economy and Finance forecasts that due to the decline in official prices, the insurance premium burden for regional subscribers will decrease by an average of 3.9% (3,839 KRW) per household per month compared to the previous year.

The range of vulnerable groups receiving welfare benefits will expand. Due to the decline in official prices, the number of households eligible for next year's Earned Income Tax Credit and Child Tax Credit is expected to increase by approximately 320,000 compared to this year.

Deputy Prime Minister Choo stated, "Going forward, the government will closely monitor changes in real estate market conditions and the impact of official prices on citizens' lives. Relevant ministries will make every effort to ensure a soft landing of the real estate market and stabilize housing for low-income households to minimize the housing burden on the public."