"I Opened It for My Juniors," But the Comprehensive Real Estate Holding Tax "Bomb" Forces Closure

A teacher who purchased an apartment to run a free dormitory for university juniors facing financial hardships—only to be hit with over 10 million won in comprehensive real estate holding taxes—has ultimately decided to shut down the dormitory.

Kim Chang-wan, vice principal of Inha University Affiliated Middle School, stated in an interview with a media outlet, "We will stop running the free dormitory starting next year," adding, "With the single student currently staying there being the last, we plan to no longer accept new applications for support."

An alumnus of Inha University, Vice Principal Kim purchased two apartments in Michuhol-gu, Incheon, in 2018 and 2020 respectively, operating them as free dormitories for younger students from outside the capital area who were struggling financially.

It stemmed from a desire to ensure that no other students would go through what he did 30-odd years ago, when he had to drive a 25-ton truck to pay for his tuition amid harsh financial difficulties.

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

However, a major crisis hit the dormitory operations in September of last year when Vice Principal Kim was slapped with 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 official value of their properties exceeded 600 million won.

With the total value of the properties under his name, including the two free dormitories, exceeding 600 million won, Vice Principal Kim became subject to the tax and had to resort to using a line of credit (minus bank account) to pay the tax.

When the story became known, alumni who had used the dormitory drafted a petition asking for tax reductions and submitted it to tax authorities.

One student, who stated they used the dormitory for over three years, said in the petition, "The dormitory costs provided by the school exceeded 1.2 million won per semester, which was a huge burden," adding, "Our senior not only asked for no deposit or monthly rent, but even provided rice and daily necessities, creating an environment where we could focus solely on our studies."

The student further pleaded, "The countless students who have passed through this place can prove that our senior did not hold these homes for the purpose of personal speculation or rental income."

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

Considering these circumstances, tax authorities reviewed a reduction, but ultimately concluded that there was "no legal basis to reduce the comprehensive real estate holding tax," handing down a decision of denial.

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.