[Anchor]

This real estate forum once again reaffirmed the policy to strengthen holding taxes on ultra-luxury homes. The direction has been set to differentiate tax burdens, such as providing exceptions for cases of temporary non-residence due to work or education. The government is scheduled to announce a tax reform package soon, which will include real estate taxes.

Reporter Jeon Hyeong-u has the details.

[Reporter]

Today's (the 23rd) forum clearly showed the direction that single-home owners living for residential purposes will not face increased tax burdens, while those holding properties for investment purposes or owning ultra-luxury homes will see their burdens grow.

In particular, President Lee Jae-myung hinted at exception clauses for single-home owners living elsewhere temporarily, asking whether such temporary non-residence for other reasons should be viewed as an investment purpose.

[President Lee Jae-myung : Even if they temporarily reside elsewhere due to other circumstances, if it is for "residential use," shouldn't it be treated the same as actual residence?]

However, for ultra-luxury homes, the tax burden is expected to increase regardless of occupancy.

The standard market price frequently mentioned by forum participants and in online opinions was 3 billion won.

Under this threshold, about 166,000 households would be subject to the tax, including apartments along the Han River belt such as Mapo and Seongdong.

If the threshold is set at 5 billion won, about 30,000 households, or 2% of all apartments in Seoul, would be subject, primarily targeting the three districts of Gangnam.

For an apartment in Banpo with a market price of 5.7 billion won and an officially assessed value of 5.5 billion won, this year's holding tax is around 38 million won.

If the tax rate for ultra-luxury homes is raised and the tax burden cap—currently capped at a maximum of 1.5 times—is also increased, the holding tax could more than double.

An apartment in Daechi-dong with a market price of 3.6 billion won and an officially assessed value of 3.2 billion won incurs about 15 million won this year, and the tax burden is expected to vary significantly depending on whether the ultra-luxury housing threshold is set at 3 billion or 5 billion won.

[Woo Byung-tak, Specialist Advisor at Shinhan Premier Pathfinder : In the case of areas corresponding to the Han River belt, it would be about 1.3 to 1.5 times compared to the previous year. For ultra-luxury homes only, there is also a possibility that the existing tax burden cap could be raised together to 2 or 3 times.]

The government plans to announce a tax reform package at the end of this month or the beginning of next month, which will include the price threshold for ultra-luxury homes, the margin of tax rate increases, and whether to lower transaction taxes.

(Video Editing: Chae Cheol-ho)