[Anchor]

There is a system called the "Reconstruction Excess Profit Restitution Scheme" that requires a portion of profits to be returned to the government if housing prices surge significantly due to reconstruction. According to SBS reporting, notices for hundreds of millions of won in charges under this scheme are scheduled to be sent to an apartment complex in Gangnam next week for the first time since the system's inception.

Reporter Jeon Hyeong-u has the details.

[Reporter]

Banpo Hyundai reconstruction complex in Seocho-gu, Seoul.

According to SBS reporting, starting next Monday, this complex will receive the first-ever reconstruction excess profit restitution notice exceeding 100 million won in the Gangnam area of Seoul.

As the five-year statute of limitations approaches at the end of this year for the apartment complex completed in 2021, the Seocho-gu Office has moved to finalize the charges.

The notified amount is reported to average around 220 million won per household.

The district office stated that the amount could be reduced by about half if the association submits additional materials and files an objection, meaning the final charge is expected to be in the early 100 million won range.

[Banpo Hyundai Reconstruction Association Member: I bought this using my retirement funds. The state is just taking it away from the citizens completely; it's exploitation.]

Trinity One, another nearby reconstruction apartment complex, is also expected to soon receive notices exceeding 700 million won per household for some residents.

[Banpo Trinity One Association Member: I have no countermeasure because of my age. Who just has hundreds of millions of won lying around?]

The Reconstruction Excess Profit Restitution Scheme is a system that recovers part of the profits gained from reconstruction as a tax, calculated by subtracting construction costs and general housing price inflation from the total profits earned.

After years of controversy, the system went into full effect two years ago, and starting next week, a total of 2 trillion won in charges is expected to be sequentially levied across 46 complexes, centered around Gangnam, Seoul.

Homeowners maintain that the calculations are flawed and plan to take legal action.

[Park Kyung-ryong / Executive Secretary, National Reconstruction Association Alliance: It would be normal to fully reflect the sharply increased prices as they are, but because they rely on statistics that underreflect the increases, it differs from reality.]

The clash between authorities demanding taxes on profits made and residents arguing they cannot pay money they have never actually held in their hands is now poised to move to the courts.

(Video Editing: Lee Seung-jin, VJ: Jeong Han-wook)