A new apartment complex in Banpo, Seocho-gu, Seoul on the 26th. Yonhap News. 

It was revealed that more than half of the comprehensive real estate holding tax paid by individuals last year was paid by elderly individuals aged 60 and over.

As the assets of the retired generation are increasingly concentrated in real estate, the burden of the comprehensive real estate holding tax is clearly shifting towards the elderly.

According to data on comprehensive real estate holding tax determinations since 2020, submitted by the National Tax Service to Rep. Park Seong-hoon of the People Power Party, a member of the National Assembly's Strategy and Finance Committee, 463,906 individuals paid 1.0952 trillion won last year.

Of these, 241,363 individuals were aged 60 and over, accounting for 52.0% of all taxpayers.

This included 132,653 individuals in their 60s and 108,710 individuals aged 70 and over.

The comprehensive real estate holding tax paid by those aged 60 and over amounted to 624.4 billion won, representing 57.0% of the total tax amount.

The average comprehensive real estate holding tax per person was approximately 2.36 million won. Those aged 60 and over paid an average of 2.59 million won, which is higher than the 2.03 million won paid by those under 60.

The proportion of taxpayers aged 60 and over has been on the rise.

Their share of the tax amount decreased from 49.1% in 2020 to 44.6% in 2021, then increased to 45.2% in 2022, surged to 56.9% in 2023, and remained at a similar level last year.

Compared to 2020, their share has increased by 7.9 percentage points (p) over the past four years.

Considering the rising real estate prices, particularly in the Gangnam area of Seoul, it is estimated that the comprehensive real estate holding tax burden for the elderly paying in December of this year will further increase.

An official sorts comprehensive real estate holding tax notices at the Seocho Post Office in Seoul on the afternoon of the 26th, as the National Tax Service began sending out the notices. Yonhap News. 

The gap with other age groups is widening.

Last year, 126,877 individuals in their 50s paid a total of 269.5 billion won. This accounted for about 24.6% of the total tax amount.

Those in their 40s paid 134.5 billion won (12.3%), and those in their 30s paid 33.5 billion won (3.1%).

The share of the tax paid by those in their 50s decreased by 2.4 percentage points over the past four years, from 27.0% in 2020.

The proportion for those in their 40s also decreased by 4.6 percentage points during the same period, from 16.9% to 12.3%.

Analysis suggests that the comprehensive real estate holding tax is increasingly solidifying as a tax primarily for the retired generation, reflecting the reality that assets of the elderly in Korea are tied up in fixed assets such as real estate.

According to a report titled 'The Status and Challenges of Housing Downsizing in an Aging Society,' published by the Hana Financial Institute in April, the proportion of financial assets in the total assets of households aged 65 and over is about 15%, with over 85% concentrated in real assets like real estate, resulting in a structure with limited readily available cash.

Rep. Park Seong-hoon stated, "The comprehensive real estate holding tax, which was introduced in 2005 during the Roh Moo-hyun administration to target high-priced property owners and multiple homeowners in Gangnam, is now imposing a heavy burden on the elderly and retirees. It is time to fundamentally discuss the entire system, including whether to maintain the comprehensive real estate holding tax."

[Table] Comprehensive Real Estate Holding Tax Determinations by Age Group in 2024 (Unit: persons, million KRW)

* "Others" refers to cases where gender and age could not be identified, such as unincorporated organizations.

[Source: National Tax Service · Park Seong-hoon's Office]

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