Professor: Real estate tax should target value, not number of homes

Professor Kang Sung-hoon of Hanyang University's Public Policy Department proposed on July 23 that the comprehensive real estate tax (종부세) should be discussed in terms of taxing based on the total value of owned properties, rather than the number of homes.

Kang argued that the current system, which applies higher tax rates to individuals owning multiple homes even if their total property value is the same as someone owning fewer but more expensive properties, needs re-evaluation for fairness. He questioned whether this differential taxation aligns with equitable principles.

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The comprehensive real estate tax should be discussed based on the value of the house, not the number of houses.

Additionally, Kang suggested strengthening deductions for owner-occupancy periods within the capital gains tax framework. This aims to alleviate the tax burden on homeowners who sell their properties, particularly those who have resided in them for extended periods.

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We need to consider whether the current system, which applies higher tax rates to those who own multiple homes even if the total value of their homes is the same, is fair in terms of taxation.