Over the past five years, as the administration changed, the comprehensive real estate tax policy swung widely, causing sharp fluctuations in tax revenue and the number of taxpayers. This has prompted criticism that tax stability and predictability are declining.
On the 22nd, according to "Analysis of the comprehensive real estate tax system and current status" submitted by the National Assembly Budget Office to Kim Mi-ae of the People Power Party, comprehensive real estate tax revenue surged from 3.6 trillion won in 2020 to 6.8 trillion won in 2022, then fell to 4.2 trillion won in 2024. It nearly doubled in a short period and then plunged about 40%.
The number of taxpayers showed a similar trend. Comprehensive real estate taxpayers surged from 660,000 in 2020 to 1.19 million in 2022, then plummeted to 450,000 in 2024. As the taxation criteria changed, the eligible population expanded significantly and then contracted again.
This volatility is seen as stemming from the fact that the comprehensive real estate tax is influenced more by publicly announced prices and changes in taxation criteria than by real estate market trends. After the publicly announced prices for multifamily housing rose about 19% in 2021 and then fell 18% in 2023, the comprehensive real estate tax moved in tandem.
Kim Mi-ae of the People Power Party said, "The comprehensive real estate tax is not simply an issue of taxing the wealthy but a tax that needs review in terms of predictability and stability," adding, "Because a structure in which tax revenue and the tax base swing widely depending on policy can be a source of market instability, institutional improvements are needed to cushion sudden increases in tax burdens caused by fluctuations in publicly announced prices."