Top 10% Bear 87% of Real Estate Tax Burden; Over Half of Taxpayers Over 60

South Korea's comprehensive real estate holding tax disproportionately burdens a small segment of the population, with the top 10% of taxpayers accounting for 87.3% of the total tax collected last year. The total tax collected for comprehensive real estate holding tax, encompassing land and housing, reached 4.86 trillion won (approximately $3.5 billion USD). This significant concentration of tax liability stems from the progressive tax rate structure, where larger real estate holdings incur higher tax burdens.

Analysis of individual taxpayers reveals that over half, specifically 52.0%, are aged 60 or older. This demographic group, numbering 284,950 individuals, paid a total of 753 billion won, representing 57.1% of the total individual tax payments. Those in their 60s constituted 28.0% of taxpayers, while individuals aged 70 and above made up 24.0%.

This trend is largely attributed to the common practice of holding substantial retirement assets in real estate. As individuals age and their primary assets remain tied up in property, they fall under the comprehensive real estate holding tax, leading to a significant portion of the tax burden being shouldered by the elderly. The average tax paid by individuals aged 60 and over was 2.64 million won (approximately $1,900 USD).