It was found that, unlike the United States, the cost of self-living was excluded from consumer prices by the National Statistical Office classifying the house price itself as a ‘capital speculative good’ with respect to the cost of self-living, which is the core of the price index.
As the government classifies houses as speculative goods, the tax policy is focusing on excessive tax rates on property taxes due to the imposition of speculative goods.
The National Statistical Office did not include it in the consumer price index in the United States and Japan, saying, "Houses are not subject to consumption expenditure and should be regarded as capital goods or speculative goods." Unlike the inclusion of maintenance costs, the reason for Korea's exclusion was revealed.
The National Statistical Office revealed this in an article on KBS's 'Consumer Price Index, How Does It Change?' on the 23rd, and KBS reported on the same day that "the sharply rising house price, that is, the cost of owning housing, was not included in the consumer price index."
Korea's CPI is in the 2% range this year, excluding the cost of owning housing, and in the US, it is in the 5% range including the cost of owning housing.
As house prices soared this year and the property tax, loan interest, and administrative expenses, which rose significantly this year, are also included in the cost of owning housing, if this is included in the consumer price index, the inflation rate will rise sharply from the 2% range.
The Consumer Price Index for December of Statistics Korea was 109.41 (100 in 2015), the largest increase in 10 years.
On the 19th of last month, Vice Minister Lee Won-won of the Ministry of Strategy and Finance said, "98% of the people have nothing to do with the comprehensive real estate tax.