Free Dormitory for Younger Students Forced to Close Due to Heavy Comprehensive Real Estate Holding Tax

A teacher who purchased apartments to operate a free dormitory for university students from disadvantaged backgrounds, only to be slapped with a comprehensive real estate holding tax bill exceeding 10 million won, has ultimately decided to shut down the dormitory.

Kim Chang-wan, vice principal of Inha University Junior High School, said in an interview with a media outlet, "We will discontinue the free dormitory operation starting next year," adding, "With the final student currently staying there, we plan to stop accepting further applicants."

An alumnus of Inha University, Vice Principal Kim had purchased two apartments in Michuhol-gu, Incheon, in 2018 and 2020, respectively, to run them as a free dormitory for younger university students from regional areas facing financial hardships.

It stemmed from a desire to ensure that no more students would go through what he did some 30 years ago, when he had to drive a 25-ton truck to earn tuition fees due to financial difficulties.

Around 50 students from all over the country, including Mokpo in South Jeolla Province and Seosan in South Chungcheong Province, have passed through this dormitory.

However, a major crisis hit the dormitory operation in September of last year when Vice Principal Kim was assessed 12.5 million won in comprehensive real estate holding taxes for the years 2021 and 2022.

During this period, multi-homeowners were subject to the comprehensive real estate holding tax if the combined total of their officially assessed property prices exceeded 600 million won.

Vice Principal Kim became subject to the tax as the value of the properties registered in his name, including the two free dormitories, exceeded 600 million won, and he even had to use a credit line (minus account) to pay the tax.

When the story became known, graduates who had used the dormitory drew up a petition asking for a reduction or exemption of the comprehensive real estate holding tax and submitted it to the tax authorities.

A student who used the dormitory for over three years stated in the petition, "The dormitory fees provided by the school exceeded 1.20 million won per semester, which was a heavy burden," adding, "Our senior not only spared us from deposits and monthly rent but also provided rice and daily necessities, creating an environment where we could focus solely on our studies."

The student further petitioned, "The numerous students who have passed through this place can prove that our senior did not own these houses for the purpose of personal speculation or rental income."

The Anti-Corruption & Civil Rights Commission also sent details to the tax authorities regarding Vice Principal Kim's donation of some 70 million won in scholarships over the past 20-plus years through Inha University and its alumni association in an effort to seek relief measures.

Taking these circumstances into consideration, the tax authorities reviewed a reduction, but ultimately reached a decision of non-exemption, stating, "There is no legal basis to reduce the comprehensive real estate holding tax."

Reported by Jung Da-eun | Video by Lee Da-in | Graphics by Yook Do-hyun | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.