By Jhoo Dong-chan
The government is considering raising property taxes on single-home owners, Deputy Prime Minister and Minister of Strategy and Finance Kim Dong-yeon said.
It is the first time a high-ranking government official officially mentioned a possible tax hike on those who own only one home.
In an interview with local media, the minister said "the balance of the tax burden should be considered between owners of one and multiple homes."
While acknowledging the ministry has focused mainly on a property tax hike on multiple-home owners, he pointed out the increasing number of people who own "one really expensive home." If they are wealthier than multiple-home owners, the government may have to take a balanced approach between the two groups, according to the minister.
The government has been inducing multiple-home owners to sell their properties by levying heavier taxes on their capital gains from investment. The Moon Jae-in administration has been announcing a series of anti-speculative measures since it came to office, including one announced Aug. 2 that was regarded as the toughest measure ever.
The government's efforts, however, have failed so far, as Seoul's housing prices, especially in the megacity's wealthiest southern areas of Gangnam, Seocho and Songpa, have continued soaring while the nation's remaining areas have suffered depreciation in value following the government's Aug. 2 measures.
Homeowners of Seoul's southern areas strongly protested Kim's remark.
"Now, the government is trying to kick us out of our own home," a Seocho-gu resident surnamed Yun said.
"My husband and I have lived our lives to the full, and my husband retired several years ago. This apartment is all we have now. We have lived here for about 20 years. It's not just housing. It's our home."
Market observers say the government will face a strong backlash if it raises property taxes on owners of only one home.
"I think the government still does not understand the dynamics of the nation's housing market," said a real estate agent surnamed Kim in Seocho-gu.
"The nation's housing price polarization comes from the discriminated supply-and-demand structure between southern Seoul and other areas. Everybody wants to live here. So, they sell their homes to buy a home here. And once you come here, you never leave here."
According to a study released by KB Kookmin Bank, Seoul's housing prices grew 5.3 percent last year from the year before. But housing prices dropped 3.2 percent in South Gyeongsang Province, 2.8 percent in North Gyeongsang Province and 2.4 percent in North Chungcheong Province.
Especially in Songpa-gu in southeastern Seoul, prices rose 6.4 percent during the same period.
The government is considering raising property taxes on single-home owners, Deputy Prime Minister and Minister of Strategy and Finance Kim Dong-yeon said.
It is the first time a high-ranking government official officially mentioned a possible tax hike on those who own only one home.
In an interview with local media, the minister said "the balance of the tax burden should be considered between owners of one and multiple homes."
While acknowledging the ministry has focused mainly on a property tax hike on multiple-home owners, he pointed out the increasing number of people who own "one really expensive home." If they are wealthier than multiple-home owners, the government may have to take a balanced approach between the two groups, according to the minister.
The government has been inducing multiple-home owners to sell their properties by levying heavier taxes on their capital gains from investment. The Moon Jae-in administration has been announcing a series of anti-speculative measures since it came to office, including one announced Aug. 2 that was regarded as the toughest measure ever.
The government's efforts, however, have failed so far, as Seoul's housing prices, especially in the megacity's wealthiest southern areas of Gangnam, Seocho and Songpa, have continued soaring while the nation's remaining areas have suffered depreciation in value following the government's Aug. 2 measures.
Homeowners of Seoul's southern areas strongly protested Kim's remark.
"Now, the government is trying to kick us out of our own home," a Seocho-gu resident surnamed Yun said.
"My husband and I have lived our lives to the full, and my husband retired several years ago. This apartment is all we have now. We have lived here for about 20 years. It's not just housing. It's our home."
Market observers say the government will face a strong backlash if it raises property taxes on owners of only one home.
"I think the government still does not understand the dynamics of the nation's housing market," said a real estate agent surnamed Kim in Seocho-gu.
"The nation's housing price polarization comes from the discriminated supply-and-demand structure between southern Seoul and other areas. Everybody wants to live here. So, they sell their homes to buy a home here. And once you come here, you never leave here."
According to a study released by KB Kookmin Bank, Seoul's housing prices grew 5.3 percent last year from the year before. But housing prices dropped 3.2 percent in South Gyeongsang Province, 2.8 percent in North Gyeongsang Province and 2.4 percent in North Chungcheong Province.
Especially in Songpa-gu in southeastern Seoul, prices rose 6.4 percent during the same period.
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