A teacher who purchased apartments to run a free dormitory for university juniors from disadvantaged backgrounds—only to be hit with more than 10 million won in comprehensive real estate holding taxes—has ultimately decided to suspend the dormitory operations.
Kim Chang-wan, vice principal at Inha University Affiliated Middle School, stated in an interview with a media outlet, "We will suspend the free dormitory operations starting next year," adding, "With the single student currently staying in the dorm as the last, we plan to stop accepting further applicants."
An alumnus of Inha University, Vice Principal Kim purchased two apartments in Michuhol-gu, Incheon, in 2018 and 2020 respectively to run as free dormitories for university juniors from rural areas facing financial hardships.
His intention was to ensure that no students would go through what he did 30 years ago when he had to drive a 25-ton truck to earn tuition money due to difficult circumstances.
About 50 students from all over the country, including Mokpo in South Jeolla Province and Seosan in South Chungcheong Province, have passed through the facility.
However, in September of last year, Vice Principal Kim was slapped with 12.5 million won in comprehensive real estate holding taxes for the years 2021 to 2022, dealing a major blow to the dormitory's operation.
During this period, owners of multiple homes were subject to the holding tax if the combined official assessed value exceeded 600 million won.
Because the value of the properties registered under his name, including the two free dormitories, exceeded 600 million won, Vice Principal Kim became subject to the taxation and ended up paying the holding tax even by using a credit line (minus account).
When the story became known, graduates who had used the dormitory drafted a petition requesting a tax reduction and submitted it to tax authorities.
One student, who stated they used the dormitory for over three years, said in the petition, "The dormitory fees provided by the university exceeded 1.2 million won per semester, which was a heavy burden," adding, "Our senior not only waived deposits and monthly rent but even provided rice and daily necessities, creating an environment where we could focus solely on our studies."
The student also appealed, "Numerous students who have passed through this place can testify that our senior did not own these homes for the purpose of personal speculation or rental income."
To seek relief measures, the Anti-Corruption and Civil Rights Commission also forwarded to tax authorities the fact that Vice Principal Kim has donated some 70 million won in scholarships over the past 20 years through Inha University and its alumni association.
Taking these circumstances into consideration, tax authorities reviewed a potential reduction, but ultimately concluded that there was "no legal basis to reduce the comprehensive real estate holding tax," deciding that it was not feasible.
Reported by Jung Da-eun | Video by Lee Da-in | Graphics by Yook Do-hyun | Produced by SBS Digital News
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