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🇰🇷 South Korea /Economy & Trade

Seoul Forum Slams Government Tax Reforms for Rental Market Impact

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • A Seoul City-hosted forum heavily criticized the government's August 3 tax reform package, arguing it could worsen the rental market.
  • Participants claimed the reforms fail to address the needs of tenants and could accelerate the disappearance of rental properties.
  • Concerns were raised that the tax changes might increase rents and displace tenants, particularly those seeking affordable housing.

At a public forum hosted by Seoul City, the government's August 3 real estate tax reform package faced sharp criticism, with participants arguing it could exacerbate the rental market crisis. The reforms, intended to stabilize housing prices by increasing tax burdens on high-value property owners and encouraging owner-occupancy, were faulted for neglecting the needs of tenants.

Real estate agents at the forum reported a significant decrease in available rental properties, with some districts seeing a reduction from 50-80 listings to fewer than 10. They warned that the tax changes could further shrink the rental market, forcing tenants to move to the outskirts of the city and face higher rents. This sentiment was echoed by experts who pointed out that the policy's focus on property owners overlooks the growing anxieties of tenant households.

The owner-occupancy policy is missing tenant households.

— Lee Chang-mooLee Chang-moo, Seoul City's chief architect and a professor at Hanyang University, criticized the government's policy focus.

Experts like Lee Chang-moo, Seoul City's chief architect and a professor at Hanyang University, stated that the government's policy, aiming to shift from renting to owning, excludes tenant households. This oversight, they argued, inevitably increases the instability for renters. Additionally, critics questioned the logic of increasing tax and financial burdens on private rental housing providers while simultaneously aiming to boost supply from this sector.

Young professionals and recent graduates shared their struggles in finding affordable rental housing in Seoul, with many resorting to higher-cost monthly rentals due to the scarcity of jeonse (lump-sum deposit) options. The uncertainty of having to move again if landlords decide to occupy their properties for tax benefits added to their anxiety. Participants urged the government and city to develop comprehensive measures, including financial support for private rental housing providers and plans for displaced tenants during redevelopment projects.

Landlords are telling me to move out because they plan to live there themselves for tax benefits, so I'm worried I'll have to find a place again.

— Kim Min-jeongA young professional shared her anxieties about finding stable rental housing in Seoul.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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