[Anchor]

There is a system called the "Reconstruction Excess Profit Restitution Scheme," which levies a tax when homeowners make significant gains from rebuilding apartments. It has been learned through reporting that the first notices for hundreds of millions of won in taxes under this scheme will be issued next week to owners of an apartment complex in Gangnam.

Reporter Jeon Hyeong-u has the details.

[Reporter]

The Banpo Hyundai reconstruction complex in Seocho-gu, Seoul.

According to SBS reporting, next Monday, homeowners here will receive the first-ever notice of reconstruction excess profit charges amounting to hundreds of millions of won in the Gangnam area of Seoul.

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

The amount to be notified is reportedly an average of around 220 million won per household.

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

[Banpo Hyundai Reconstruction Association Member: I bought this with my severance pay. The government is completely taking it away from the citizens; it is exploitation.]

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

[Banpo Trinity One Association Member: I have no countermeasure, as I am old. Who just has hundreds of millions of won lying around?]

The reconstruction excess profit restitution scheme is a system that retrieves a portion of the profits gained from reconstruction as tax, after subtracting construction costs and general housing price appreciation from the profits obtained.

After years of controversy, it was fully implemented two years ago, and starting next week, charges totaling 2 trillion won across 46 complexes, centered in Gangnam, Seoul, are expected to be levied sequentially.

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

[Park Kyung-ryong / Secretary, National Reconstruction Association Alliance: It would be normal to fully reflect the prices that have risen significantly, but because they base it on statistics where parts of the rise are understated, it differs from reality.]

The clash between authorities—who argue that people should pay in proportion to what they earned—and residents—who argue they cannot pay money they have not even put in their hands—is now expected to head to the courts.

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