South Korea recorded large extra tax revenue close to 60 trillion won ($50 billion) last year after the country’s soaring housing prices swelled the government’s real estate tax income, especially with capital gains tax income from property sales nearly doubled the government’s projection.

According to data from the National Tax Service submitted to Rep. Yoo Gyeong-joon of the main opposition People Power Party on Thursday, the real estate capital gains tax income as of the end of November last year amounted to 34.37 trillion won, up 17.49 trillion won from the government’s early year projection of 16.88 trillion won.

The amount of excess tax revenue from capital gains tax would further increase, reaching about 20 trillion won for the year when December data is tallied later. It means one-third of 60 trillion won in the Korean government’s excess tax revenue last year came from capital gains tax.

The inheritance and gift tax income amounted to 14.04 trillion won as of November, which is 1.5 times higher than the early year estimation of 9.09 trillion won. The comprehensive real estate holding tax income came to 8.56 trillion won last year, 1.7 times higher than the government’s projection of 5.11 trillion won.

Critics say the result reflects a failure in real estate policy of the Moon Jae-in administration. The extra tax revenue accounts for about 10 percent of the country’s annual budget.

By Chun Gyung-woon and Minu Kim

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