This editorial from Hankyoreh reports that the public pricing of apartments in Seoul has seen its largest increase in five years, with a nationwide average rise of 9.16%, and an astonishing 24.7% increase in the affluent Gangnam area. The article highlights that while these rising public prices should naturally lead to higher property taxes, the effective tax rate remains low, revealing a disparity between soaring property values and tax liabilities. It notes that the increase in the valuation of properties has led to an estimated 40-50% rise in ownership tax for key areas, but some parts of northern Seoul and many 지방 (local) areas still maintain similar or lower tax rates compared to the previous year.

The editorial criticizes calls for tax relief by emphasizing that ignoring the substantial gains in home values while complaining about taxes distorts reality. It provides an example of a high-value apartment in Banpo-dong, Seocho-gu, where the effective rate of property tax is merely 0.43%. This discrepancy showcases a significant gap between the high market value of properties and their corresponding taxation. The piece argues that the situation has worsened after the current government, led by President Yoon Suk-yeol, reduced the public price assessment ratios and proposed abandoning its asset price normalization plans.

The article concludes by stating that the government should swiftly establish a comprehensive roadmap for reforming the property tax system. Although President Yoon mentioned at a recent Cabinet meeting that taxes are the last resort, he acknowledged that they might be necessary to stabilize the volatile real estate market. The editorial stresses that higher effective tax rates are essential for real estate tax normalization, indicating the need for careful policy adjustments to ensure fairness and equity in the property tax system.