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  • Seoul to Impose Property Tax for September 2014

    SMG 1788
  • The Seoul Metropolitan Government sent out 3.41 million property tax bills totaling KRW 2.2077 trillion to the owners of residential buildings and plots of land in Seoul in the second half of 2014.

    The Seoul Metropolitan Government sent out 3.41 million property tax bills totaling KRW 2.2077 trillion to the owners of residential buildings and plots of land in Seoul in the second half of 2014.

    Property tax is imposed on owners of residential buildings, lots of land, non-residential structures, and others, and the tax for the year is billed in two installments, in July and September. In July, the government imposed a total of KRW 1.221 trillion on half of the property tax for residential buildings. Property tax on structures, ships, and aircrafts has also been billed. This month, the remaining half of the property tax on residential buildings and lots of lands, amounting to KRW 2.2077 trillion, has been levied on the owners.

    [Property Liable for Tax by Due Date]

    Category July September
    Bienes gravables 1/2 de viviendas, construcciones, aviones, barcos 1/2 de viviendas,
    terrenos

    The total amount of property tax levied on Seoul citizens this year is KRW 3.4287 trillion, which is KRW 188.7 billion (5.8%) higher than the previous year (KRW 3.24 trillion). By property type, KRW 1.4367 trillion was imposed on residential buildings, KRW 495 billion on other structures, and KRW 1.4937 on land and others.

    [Total Property Tax in 2014]

    (Unit: KRW 100 million, %)

    Category 2014
    Property Tax   Total July September
    Total 34,287 12,210 22,077
    Residential 14,367 7,227 7,140
    Non-residential
    (stores․
    offices, etc.)
    4,950 4,950 -
    Land (vacant land,
    business use)
    14,937 - 14,937
    Aircrafts and Ships 33 33 -

    Regarding changes in property tax rates, the tax on residential buildings has increased by 3% (KRW 42.1 billion), lots of land by 5.5% (KRW 77.9 billion), and structures by 15.6% (KRW 66.7 billion). The reason for the 5.8% (KRW 188.7 billion) increase in property tax this year is the higher declared property value of residential buildings, land, and structures compared to last year.

    [Property Tax Rate Variations by Property Liable for Taxation]

    (Unit: thousands of cases, KRW 100 million, %)

    Category 2014(A) 2013(B) Variation (A/B)
    Case Value Case Value Case Value
    Total 7,150 34,287 6,942 32,400 1,887 5.8%
    Residential 5,712 14,367 5,529 13,946 421 3.0%
    Building 807 4,950 793 4,283 667 15.6%
    Land 630 14,937 619 14,158 779 5.5%
    Others 1 33 1 13 20 153.8%

    By district, Gangnam-gu topped the list with KRW 415.4 billion in property tax, followed by Seocho-gu with KRW 229.5 billion, and Songpa-gu with KRW 197.2 billion. The district with the least amount of property tax was Dobong-gu with KRW 27.6 billion, followed by Gangbuk-gu with KRW 29 billion, and Jungnang-gu with KRW 35.1 billion. Compared to last year, the largest increase in September property tax occurred in Gangseo-gu, with an increase of 16.3% (KRW 11.7 billion), followed by Eunpyeong-gu with 12% (KRW 4.9 billion), and Songpa-gu with 9.1% (KRW 16.5 billion). However, a decrease of 0.7% (KRW 700 million) occurred in Yongsan-gu.

    To achieve fiscal balance among the districts, the Seoul Metropolitan Government plans to evenly distribute KRW 896.2 billion in joint property tax revenue among the 25 districts of Seoul, amounting to KRW 35.8 billion per district.

    The joint property tax revenue system is a system in which 50% of the imposed property tax is collected as Seoul Metropolitan City Property Tax and then evenly distributed among the 25 districts. It was first implemented in 2008 to narrow the fiscal gap between the districts in the southern and northern parts of Seoul. Districts in the southern part of Seoul bring in 15.3 times more tax revenue through property tax than the districts in the northern part of Seoul, but this number dropped to 4.4 after the distribution.

    [Imposition of Property Tax by District in September 2014]

    (Unit: billions of KRW)

    District Rank Property Tax Percentage District Rank Property Tax Percentage
    Gangnam-gu 1 4,154 18.8% Dongdaemun-gu 14 531 2.4%
    Seocho-gu 2 2,295 10.4% Guro-gu 15 526 2.4%
    Songpa-gu 3 1,972 8.9% Dongjak-gu 16 516 2.3%
    Jung-gu 4 1,404 6.4% Seongbuk-gu 17 501 2.3%
    Jongno-go 5 971 4.4% Gwanak-gu 18 500 2.3%
    Yeongdeungpo-gu 6 969 4.4% Eunpyeong-gu 19 459 2.1%
    Yongsan-go 7 957 4.3% Nowon-gu 20 458 2.1%
    Gangseo-gu 8 833 3.8% Seodaemun-gu 21 428 1.9%
    Mapo-gu 9 823 3.7% Geumcheon-gu 22 372 1.7%
    Gandgong-gu 10 775 3.5% Jungnang-gu 23 351 1.6%
    Seongdong-gu 11 592 2.7% Gangbuk-gu 24 290 1.3%
    Yangcheon-gu 12 589 2.7% Dobong-gu 25 276 1.3%
    Gwangjin-gu 13 535 2.4%        

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