The appraised value of land rose sharply which could lead to additional taxing on land-rich on top of multiple landlords in Korea.

According to the Ministry of Land, Infrastructure, and Transport on Wednesday, the state-appraised value privately-owned land subject to registration as of January 1, 2018 jumped 6.28 percent from a year earlier. It is the largest year-on-year gain since 2008 with a 10.05 percent gain.

The appraised land value rose more sharply in regional cities than metropolitan Seoul area. The value of land around Seoul rose an average 5.37 percent, while that of 10 cities gained 8.92 percent.

The appraised value of Jeju, the country’s popular resort island cramming with Chinese property investors, soared 17.51 percent on year, the largest among all, followed by Busan with 11.0 percent, Sejong 9.06 percent, Daegu 9.03 percent, Ulsan 8.54 percent, and Gwangju 8.15 percent.

The government believes land value shot amid relocation and decentralization efforts along with development ahead of the Winter Olympics held in the country in February. Ongoing property development in Jeju and Busan has also allowed the price to remain on the upward trend.

The appreciation would add fear to landlords as the government is prepping to reform the property tax system to reflect the land value in determining property value and tax.

By Lee Ji-yong and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]