After the government announced its tax reform plan, a homebuyer who intended to live in their new home expressed frustration at being unexpectedly classified as a target for the comprehensive real estate tax (property tax).
On August 5, a post titled "I trusted the government and bought a house, only to become a non-resident one-home speculator overnight" appeared on the anonymous workplace community 'Blind.'
The author, identified as A, stated, "I am a non-homeowner who purchased a house with tenants. I believed the government's promise to defer actual residence until the tenant's contract expired, and I planned to move in as soon as the lease ended."
However, following the recent tax reform announcement, A claimed they were classified as a 'non-resident one-home' and became subject to the property tax.
A explained that the lease on the home they purchased expires in August 2027. However, the tax assessment date is June 1, 2027, meaning they will not be living in the home by that date.
"I bought the house trusting the government's deferment policy, but now I am treated as a non-resident one-home speculator and must pay property tax on the assessment date," A lamented.
A further noted that buyers who received a deferment until June 1, 2027, could also be classified as non-resident one-home owners and thus liable for property tax.
In A's example, a home with a publicly assessed value of 1.4 billion won would allow a typical resident one-home owner to receive a 1.4 billion won exemption, resulting in no property tax. However, a buyer with a deferment would be classified as a non-resident one-home owner and only receive a 900 million won exemption. Consequently, the 500 million won difference would be included in the taxable base, potentially leading to property tax liability.
A also argued that if the property is co-owned, the tax burden could increase significantly.
"In the case of a co-owned home valued at 1.8 billion won, a typical resident one-home owner would each receive a 900 million won exemption, resulting in no property tax. However, a co-owner with a deferment would only receive a 400 million won exemption each, reducing the total exemption from 1.8 billion won to 800 million won. This means that the co-owners would be liable for property tax on the 1 billion won difference," A explained.
Additionally, while the tax reform plan includes provisions recognizing residence for those temporarily unable to reside due to unavoidable circumstances, A pointed out that buyers with a deferment do not qualify for this exception.
A expressed, "I bought a house because the government promised a deferment for actual residence, but now, just months later, I am told, 'You are a non-resident one-home speculator, so pay the property tax.' How can I accept this reality of being labeled a speculator and facing punitive taxation?"
The post quickly gained traction online, sparking a debate over the fairness of the government's tax reform plan and the residence deferment system.
In response to the post, a physician identified as B commented, "This is truly unfortunate. The frequent changes in policy seem to create such absurd situations." B added, "If there are many cases, it might go unnoticed, but for a few, it feels like they are being unfairly targeted."
An employee from the Korea Veterans Welfare Medical Service, identified as C, remarked, "They have created so many exceptions that they probably won't even remember this. They should just leave it alone instead of creating victims. Is there no way to appeal? This is so unfair."
Other netizens also pointed out, "They are changing regulations haphazardly, creating victims in the process." Comments included, "I remember those in their forties who sold their homes and moved to jeonse after listening to Moon Jae-in, only to end up fighting with their spouses and getting divorced," and "The real estate policy itself is a disaster."
Meanwhile, the actual tax liability and applicable targets may change based on future legislative processes and the finalization of tax laws and enforcement regulations.
* This article has been translated by AI.
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