Why Korea is reviving property tax hike debate

Contributing sentiments towards policy:

63% : The comprehensive real estate tax is levied on an individual's total property holdings, with the first 900 million won of combined appraised value exempt, or 1.2 billion won for single-home households.
60% : The ownership tax consists of two layers: the local property tax and the comprehensive real estate tax, a national levy targeting higher-value holdings.
59% : "Tax pass-through effects must be front and center in any reform," he said.
57% : "A credible housing policy must include both tax and supply reforms.
54% : The best solution is to lower transaction taxes while moderately raising holding taxes so homes can circulate more freely," Han Mun-do, professor of real-estate studies at Seoul Digital University, said in a recent radio interview.
52% : Property tax is imposed on 60 percent of a home's government-appraised value, with a progressive rate between 0.1 and 0.4 percent depending on value brackets.
52% : " His comments were interpreted as leaving the door open for a revival of the property-holding tax proposal that was omitted from the government's Oct. 15 real estate package.
49% : "If we were to apply a 1 percent property tax rate like in the US, the owner of a 5 billion-won home would have to pay about 50 million won in holding taxes each year," he said.
46% : "It's wrong to say we can't touch the tax code," he said.
46% : Rep. Han Jeong-ae, who heads the ruling party's housing-policy task force, said the government is "not currently considering" additional tax measures -- highlighting a subtle rift between the presidential office and party leadership.
45% : Seoul revisits ownership tax reforms as housing demand rebounds despite tighter lending rules The Korean government is raising the prospect of increasing property-holding taxes, as policymakers confront renewed signs of housing speculation, rising prices and a shortage of listings despite a series of tightening measures.
45% : "If half of one's annual income goes to taxes, it becomes unsustainable (to hold onto such an expensive home).
45% : Political strategists note that any tax hike could alienate middle-class homeowners already strained by mortgage limits and higher interest rates.
39% : Experts broadly agree that Korea's tax framework is misaligned, though they differ on how quickly reform should proceed.
39% : Seo Jin-hyung, professor of real estate law at Kwangwoon University, warned that without careful calibration, higher ownership taxes could trigger rent inflation as landlords pass on costs.
37% : "When transfer taxes are too heavy, listings dry up.
36% : Presidential policy chief Kim Yong-beom has nonetheless argued that Korea's ownership taxes are "undeniably low by global standards."
35% : Earlier this week, Finance Minister Koo Yun-cheol echoed that concern, saying Korea's housing tax structure -- with low property-holding taxes and high capital-gains levies -- has effectively frozen the market.
20% : Officials now see an imbalance in the tax system itself as part of the problem, where property-holding taxes remain among the lowest in the OECD while transfer taxes are among the highest, discouraging sales and locking up supply.

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