The Korea Real Estate Investment Trust (REITs) Association announced on the 5th that it has proposed to the government to exclude public rental housing owned by REITs from the aggregate calculation of the Comprehensive Real Estate Tax(종부세).
In its "2025 Economic Policy Direction" announced last month, the government decided to include public rental housing owned by the Korea Land & Housing Corporation (LH) or regional housing and urban development corporations in the list of exemptions from the aggregate calculation of the Comprehensive Real Estate Tax, regardless of the value or area.
The REITs Association argues that this policy is aimed at expanding the supply of public rental housing and promoting housing stability, and that REITs should receive the same tax benefits as they also supply public rental housing.
As of the end of November last year, 30 REITs were reported to be supplying a total of 82,577 households.
An official from the REITs Association said, "Whether the business entity that supplies public rental housing is a public corporation or a REIT, they are all subject to the same regulations, and REITs are currently making a sufficient contribution to the supply of public rental housing." He added, "It is necessary to activate the supply of rental housing through REITs through equitable tax policies."
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