Concerns about a surge in burdens… Se-Hoon Oh, Seoul “Re-investigation of publicly announced prices”

Seoul Mayor Oh Se-hoon said that this year he will re-investigate whether the official prices for apartment houses (apartments, coalitions, and multiple households) have been properly calculated. As the Ministry of Land, Transport and Maritime Affairs realizes the publicly announced price, there is a growing concern that the burden of various taxes, such as the holding tax, will increase rapidly, and it is also pointed out that there is an error in calculating the publicly disclosed price. However, it is expected to be difficult as the investigation and calculation of the publicly announced price is the sole authority of the Ministry of Land, Infrastructure and Transport.

In a call with JoongAng Ilbo on the 10th, Mayor Oh said, “Mayor Oh officially announced his willingness to review the publicly announced prices at this meeting,” and said, “We expect specific instructions to be given to the relevant departments soon.” The official said, “Because the government decided to confirm the disclosure price on the 29th, the disclosure price this year is undecided.” said.

The background of Mayor Oh’s re-examination of the publicly disclosed price was due to a rapid increase in the publicly announced price, the resulting tax burden, and errors in the process of calculating the publicly disclosed price. According to the Ministry of Land, Infrastructure and Transport, the public announcement price of apartment houses in Seoul this year rose by an average of 19.9%. There are also a number of places that have risen sharply above the average, such as Nowon-gu 34.7% and Gangdong-gu 27.3%. Since the publicly announced price is the basis for the imposition of various taxes, if the publicly disclosed price rises steeply, the tax burden also increases. In particular, property taxes and comprehensive real estate taxes are progressive, with the tax rate jumping in a’stepped style’, so the rate of increase in taxes may be greater than the rate of increase in the published price.

The number of payment targets has also increased. In the case of the final tax, the number of apartments subject to payment has increased in one year as the recent increase in house prices has continued. As one of the four apartments subject to public disclosure in Seoul (24.2%) fell within the bounds of the taxation tax, criticism for the purpose of’the government shifting the responsibility for raising the house price to the burden of the national tax’ was intensified. An official from Mayor Oh said, “In addition to the possession tax, there are studies that show that it is related to 63 kinds of taxes such as health insurance premiums and various charges.”

Some point out that there is an error in the calculation process. Seocho-gu Officer Cho Eun-hee and Jeju-do Governor Won Hee-ryong held a joint press conference on the 5th. Filed an objection. The Ministry of Land, Infrastructure and Transport explained that “the transaction price of a nearby apartment similar to this apartment is between 1.8 billion and 2.2 billion won, so the realization rate is 70%.” Reflecting the actual transaction price is an error,” he refuted.

However, as the Ministry of Land, Infrastructure and Transport still has the authority to investigate and calculate the public announcement price, there are observations that conflict will be inevitable if the Seoul Metropolitan Government re-investigation. In particular, as Mayor Oh decided to promote the administrative procedure for rebuilt apartments, the possibility of other conflicts with the city council and the Ministry of Land, Infrastructure and Transport remains. The ordinance must be revised to ease the floor area ratio for reconstruction and other maintenance projects, as the ruling party must obtain the consent of the 93% city council.

Mayor Oh said, “There is a delay in reconstruction in Jamsil Jugong Complex 5 in Songpa-gu, Jayang-dong, Gwangjin-gu, and Apgujeong-dong, Gangnam-gu, etc., due to delays in public notice by the Seoul Metropolitan Government and reinforcement of the Ministry of Land, Infrastructure and Transport. “I will also examine how to raise the issue to the Ministry of Land, Infrastructure and Transport.”

Reporter Heo Jeong-won [email protected]