Kim Rahn is the managing editor of The Korea Times. Since joining the company in 2003, she has covered various beats including the presidential office, Seoul city government, the Bank of Korea and the tourism industry. In 2014, she won the Society of Publishers in Asia (SOPA) award for her coverage of the ordeals of migrant women in Korea.
Ewha loses suit for taxation on building
By Kim Rahn
School facilities on college campuses are subject to property tax if they are used for commercial purposes, a district court has ruled.
If the ruling is confirmed by a higher court, it may have a huge influence on a number of universities which have focused on building large-sized facilities and attracting franchised restaurants and cafes.
The Seoul Administrative Court said Monday that it recently ruled against Ewha Womans University, which demanded the Seodaemun District Office annul its imposing of 400 million won in property tax on the Ewha Campus Complex (ECC).
The ECC, a building of six basement levels, has been a representative building of the school and a major tourist attraction since its opening in 2008. Ewha registered it as a facility for educational research and got a property tax exemption according to the related law.
The school changed the purpose of parts of the building to a facility for the community. It offered spaces for lease, and franchised restaurants, coffeehouses, banks, convenience stores and theaters filled them.
The district office then said the school has been doing a lease business, and imposed the tax for the period of 2010-2014. The school then filed suit, claiming those facilities were for students’ welfare, and thus should not be treated like lease businesses.
But the court ruled that the facilities were not necessary for the school’s educational purposes and students’ welfare, saying the school has made a profit through the leases so the taxation was proper.
“There is no specific reason that the restaurants and cafes should be on campus,” the court said. “The theaters are also mainly used for concerts for entertainers, meaning for commercial purposes unrelated to education.”
Ewha claimed that the restaurants were necessary for students’ welfare, but the court said, “There are five school-run restaurants which offer low-priced foods. There are also many franchised restaurants near the school, which can satisfy students’ welfare.”