The fair market value ratio is set by presidential decree, adjusted elastically within a range of 80% +- 20%, based on the real estate market environment and fiscal demand, for the purpose of property taxation.

The assessed standard for property tax or comprehensive real estate tax is calculated by multiplying the fair market value ratio by the publicly announced land value.

In other words,

Property Tax Assessed Standard = Publicly Announced Land Value * Fair Market Value Ratio

Comprehensive Real Estate Tax Assessed Standard = (Housing Appraised Price - 600 million KRW) * Fair Market Value Ratio

Currently, the fair market value ratio for comprehensive real estate tax on houses is at the minimum of 60%. However, there is a government press release stating that it will be increased to 80% before the assessment reference date, which is June 1st.

Nevertheless, due to various amendments in the tax rates, it is expected that the tax burden will actually decrease compared to the previous year (2022).

If you have any further inquiries or difficulties regarding detailed inquiries or declarations, please feel free to visit us or contact us by phone.

Thank you.