Korea's excessively high and escalating land prices always have raised serious concerns among policy makers about the long-term stability of the economy. And their negative impacts of failing to provide a sufficient amount of urban lands for infrastructure, manufacturing, and housing needs have been addressed repeatedly. Furthermore, coupled with the initial concentration of land ownership among the wealthy class, land price inflation could worsen the subsequent income and wealth distribution as a whole.
While those high land prices per se might have truly reflected the extreme scarcity of a non-renewable resource due to the rapid economic development, it is doubtful whether the stabilization of price itself should be considered appropriate as a policy objective. Economists and policy makers in Korea, however, have long been interested in employing tax polices in order to solve these problems. Indeed, many administrations have relied on the change of various real estate taxes as a tool for fiscal stimulus or deterrent in the real estate market. In 1990, the Aggregate Land Value Tax (ALT) was introduced in an effort to stabilize the speculation-driven land price inflation and to lessen the degree of land ownership concentration. (The rest omitted)
- 토지세 강화정책의 경제적 효과(Economic effects of aggregate land value taxation in Korea)
토지세 강화정책의 경제적 효과(Economic effects of aggregate land value taxation in Korea)
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Economic Administration|