South Korea to Revise Property Tax Rules This Month

By Kang Yoon-seung

SEOUL, July 7 (Yonhap) -- South Korea will unveil property tax revisions later this month as part of its effort to strike a balance between recurrent and transaction taxes, the finance minister said Tuesday.

Finance Minister Koo Yun-cheol made the remark during an interview with MBC Radio, a local broadcaster, noting the government intends to make a final decision after gathering opinions from the public.

"Basically, we aim to establish a property market centered on actual residents, under the principle that homes are for living, not buying," Koo said, reflecting the government's efforts to curb speculative trading.

Koo said the government will review various aspects of real estate taxation, including reducing benefits of long-term ownership for those who have not actually lived in their properties, while falling short of offering more details.

"We are reviewing (the property tax) from the perspective that the two should be balanced," Koo said, when asked if the government is currently seeking to revamp both recurrent and transaction taxes.

Touching on the three recent megaprojects announced by the government, Koo said such projects will provide significant opportunities for the country if implemented swiftly through all-out commitment.

Koo also noted the government has yet to estimate additional tax revenue collected from chipmakers amid the booming semiconductor industry, noting it is carrying out an internal review to utilize the funds to prepare for the future.