"4.6 Trillion Won from CREHT Should Be Distributed as Basic Income to All Citizens"

Major Progressive Parties and Two Largest Labor Unions Hold Forum
"Current Grant System Fails to Build Support"

Tax-related reference photo. Getty Images

A proposal has been raised to distribute tax revenues collected from the Comprehensive Real Estate Holding Tax (CREHT) to all citizens in the form of a basic income.

According to Yonhap News on July 2, Assemblyman Yoon Jong-o of the Progressive Party, Assemblyman Cha Kyoo-keun of the National Innovation Party, Assemblyman Han Chang-min of the Social Democratic Party, along with People's Solidarity for Participatory Democracy (PSPD), the Korean Confederation of Trade Unions (KCTU), and the Federation of Korean Trade Unions (FKTU), held a "Forum on Normalizing Asset Taxation" at the National Assembly Members' Office Building in Yeouido on the same day. The event was organized to review the current asset taxation system and seek principles for taxation across income and assets, ahead of the government's announcement of a new tax reform plan.

Lee Taekyung, Deputy Director of the Land Freedom Research Institute, who participated as a panelist, argued that last year’s CREHT collections amounted to 4.6541 trillion won, and that distributing this amount to all citizens would have a distribution effect and expand support comparable to that of emergency relief funds.

Last year, about 540,000 people were subject to the CREHT, accounting for 3.4% of all housing owners in 2024, which totals approximately 15,976,000 people.

Deputy Director Lee pointed out, "The current method, in which the government allocates CREHT revenues to local governments as grants, has failed to build political support." He further explained, "While there is significant resentment among those who pay the CREHT, the beneficiaries are often unaware that they are actually receiving any benefit, which is a major issue with the tax."

Deputy Director Lee also noted that when the real estate market overheats, the negative consequences of the so-called "smart single home" phenomenon—where people prefer to own one expensive home—are exacerbated. He said, "Compared to someone who owns a single home worth several billions of won, those who own three low-priced homes in the Seoul metropolitan area bear an overwhelming burden," arguing that it is more reasonable to use the total assessed value, rather than the number of homes owned, as the basis for taxation.

This content was produced with the assistance of AI translation services.