Anchor: The government has unveiled its real estate tax reform plan, which will raise taxes for properties priced 600 million won or more and for multiple homeowners. The proposed scheme is expected to affect some 350-thousand high-value property owners in the country.
Choi You Sun has this report.

Report: The Finance Ministry on Friday said the government's proposed real estate tax hike targets owners of high-value properties in a bid to reduce the widening income gap, help level off housing prices and improve fair taxation.

The government plans to increase the comprehensive real estate tax rate for a property priced 600 million won or more by point-one to point-five percentage point, with the maximum rate set to rise from the current two percent to two-point-five percent. 

Owners of three houses or more, meanwhile, will see their tax rates increase by an additional point-three percentage point.

The Finance Ministry also said it will seek to raise the "official" value of real estate by gradually increasing the taxable rate of a property to 90 percent by 2020. It is currently 80 percent of the government-set value.

The government usually taxes land and homes based on its annual assessment value, instead of the actual market value. 

The tax overhaul is expected to affect some 350-thousand people and collect an additional 740 billion won in tax revenue.

Officials said the tax revenue will be used to reduce the real estate transaction tax burden for the country's newlyweds and other groups in need of government support.

The proposal will be finalized later this month and submitted to the National Assembly for approval in September.
Choi You Sun, KBS World Radio News.