Politics · South Korea · 3 hrs ago
Seoul district plans first Gangnam-area reconstruction levy this year
Seocho District plans to impose a reconstruction-profit levy on Banpo Hyundai by the end of the year.
The apartment complex, now called Banpo Centerville Asterium, is in Seoul’s Seocho District and began welcoming residents in 2021.
The levy charges rebuilding groups when property gains exceed set costs and normal price rises.
The planned charge could be the first imposed in Seoul’s Gangnam area, after years in which no complexes had been billed.
Buyers in another Seocho complex, Raemian Trini One, face uncertainty over a possible average bill of about 700 million won per household, and some listings differ in price depending on who pays it.
The dispute is over whether a five-year deadline runs from the complex’s completion or from a 2024 law change.
Seocho says it must issue the bill this year, while the land ministry says it has until 2029.
Other rebuilding groups may also face charges, as more than 60 complexes nationwide are expected to be affected; some groups say they may sue if billed.
Seocho District plans to impose a reconstruction levy on Banpo Hyundai by the end of 2026, in what could be the first such charge in the Gangnam area.
The district says a five-year time limit means it must impose the levy this year, while the land ministry says it has until 2029.
The dispute has alarmed reconstruction associations, which say they may sue if levies are imposed.
Uncertainty over a possible levy of about 700 million won per household has contributed to differing prices for units at Banpo Raemian Trini One.
More than 60 complexes nationwide are estimated to face potential reconstruction levies, including 46 in Seoul.
- Who
- Seocho District plans to impose the levy on Banpo Hyundai. The land ministry interprets the deadline differently.
- What
- The district plans to charge a reconstruction excess-profit levy.
- When
- By the end of 2026, according to Seocho District.
- Where
- Banpo Hyundai in Seocho District, Seoul.
- Why
- Seocho District says a five-year limitation period requires it to impose the levy this year.
Seocho District
South Korea's land ministry
Deadline
Seocho District
The district says the levy must be imposed by the end of 2026 under a five-year time limit.
South Korea's land ministry
The ministry says the five-year period should be counted from the 2024 law revision, leaving until 2029.
Occupancy began at Banpo Hyundai, now called Banpo Centreville Asterium.
A supplementary provision on the deadline for determining and imposing reconstruction charges was added to the law.
A revision to the reconstruction levy law took effect.
Seocho District says it plans to impose the levy on Banpo Hyundai by year-end.
- Planned levy
- Banpo Hyundai, Seocho District
- District deadline
- By the end of 2026
- Ministry interpretation
- By 2029
- Potential Trini One levy
- About 700 million won per household
- Potentially affected complexes
- More than 60 nationwide; 46 in Seoul
1 source
What people are saying
Since the supplementary provision on the deadline for determining and imposing reconstruction charges, newly added on Dec. 26, 2023, says that charges for projects whose end point for calculating the charge was before the law took effect may be determined and imposed within five months of the law taking effect, it is right to view the limitation period as five years after the revised law took effect.