The penthouse is Taekwang Industries…Haeundae L-City Corporation’Tax Bomb’

A real estate brokerage company in Busan bought three for 6 billion won. Another company that operates a golf course in Gyeongju purchased two side by side for 4 billion won, and gave one for 1.2 billion won as a charter.

There are a lot of corporate owners in L City, the nation’s tallest apartment in Haeundae Beach, Busan. By the time the company moved in, it was almost one in 10 households. Then, it was found that some corporations sold out after a storm after the government’s continuous high-intensity regulation of the housing market last year.

According to the registration status of L City, the first owner of about 60 households out of 882 households was identified as a corporation. The apartment was completed in late 2019 with a maximum of 85 floors of 144 to 244 m2 for exclusive use, and ownership transfer registration began in earnest from the beginning of last year. The number of households sold the most by corporations is three, and two companies have contracts for two. Businesses range from real estate-related to e-commerce and advertising companies, and regions are also spread across the country.

It has a high subscription competition rate, and corporate ownership of apartments sold is unusual. Corporations are not eligible for subscription.

Unlike the competition for subscription, there were many uncontracts. At the time of subscription in October 2015, L-City recorded an average of 17.2 to 1 competition. 137 people applied for two penthouses on the top floor, and the competition rate was 68.5:1. However, since the actual contract rate was not high, contracts were abandoned one after another, and unsold items were transferred to corporations.

At that time, the pre-sale price was 27.3 million won per 3.3 square meters, so it was not sold out by the winners.

An industry official said, “It is a high-rise apartment by the seaside of Haeundae, so there was a lot of interest from companies looking forward to future asset value and using it for business such as hosting buyers.

Some analysts say that the executive chairman Lee Young-bok was a big figure in the Yeongnam region, so there were many corporate customers. Busan companies account for about half.

One of the penthouses was taken by Taekwang Industries, the late Chairman Park Yeon-cha, who was the’supporter of Roh Moo-hyun’. The transaction price was 6.84 billion won. The rest of the penthouse is still unsold.

Corporations located in L City faced a government-regulated frost. In June and July of last year, the government significantly strengthened the tax on corporate-owned houses, saying that it would eradicate speculative demand using corporations. Starting this year, the deduction of KRW 600 million and the upper limit on tax burden will be removed, and the highest individual tax rate (3% for 1 house in the adjusted area and 6% for 2 houses or more) will be applied as a single tax rate. From January 1 of this year, the additional tax rate, which was added to the basic corporate tax rate (10-25%) on corporate housing transfer gains, has been raised from 10% to 20%.

If the public price of this year is the same as last year, even for the three houses of the Busan real estate brokerage company, the tax tax will quadruple from 67 million won last year to 342 million won this year.

In front of the’bomb’ of the ownership tax and transfer tax, corporations sold their houses one after another. Since the government announcement, the corporation has sold about 10 households. Comparing the buy price and the selling price, the margin is 12 to 780 million won.

A Busan e-commerce company that owns two upper and lower floors sold one. If the two houses remain unchanged, the tax on the tax will increase 15 times from 8 million won last year to 126 million won this year. Since one was disposed of, the final tax only increased to 30 million won this year.

Kim Jong-pil said, “As Haeundae in Busan was designated as an area subject to adjustment last year, the burden of taxation increases.”

Taekwang Ind. Penthouse was ranked 10th in the country last year with an official price of 5.43 billion won. If there is no change in the official price this year, the tax is 170 million won, more than three times that of last year (51 million won).

It was found that all the quantities sold by L-City-owned corporations were bought by individuals. It is not easy for corporations to buy because not only the ownership tax and the transfer tax, but also the corporate acquisition tax has been greatly strengthened. The corporate acquisition tax rate has risen from 1 to 3% to 12%. If the acquisition price is 2 billion won, the acquisition tax is 240 million won.

Lee Wol-moo, CEO of Mid-Me Networks, predicted, “The companies that think the holding value is high will continue to hold it despite the heavy tax burden.” Reporter Ahn Jang-won [email protected]