Effects of Tax Incentive Policies for Land Use on Local Socioeconomic Conditions: A Case of Tax Policies for Urban Regeneration Projects in Republic of Korea
South Korea has implemented several housing urban regeneration projects (URPs) and offers various tax incentives to support these efforts. However, the reality is that there is insufficient empirical evidence to determine whether these incentives have a socioeconomic impact on URPs. The aim of this...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-09-01
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| Series: | Land |
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| Online Access: | https://www.mdpi.com/2073-445X/12/9/1801 |
| _version_ | 1797579251709378560 |
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| author | JiSun Chung SungMan Yoon |
| author_facet | JiSun Chung SungMan Yoon |
| author_sort | JiSun Chung |
| collection | DOAJ |
| description | South Korea has implemented several housing urban regeneration projects (URPs) and offers various tax incentives to support these efforts. However, the reality is that there is insufficient empirical evidence to determine whether these incentives have a socioeconomic impact on URPs. The aim of this study is to examine the effects of tax incentives related to urban regeneration projects (URPTAX) on local socioeconomic factors, such as Gross Regional Domestic Product (GRDP), aging housing reduction, and housing prices. Fixed-effect models and cost–benefit analysis methods were employed in the study. The results demonstrate the following outcomes. Firstly, URPTAX positively contributes to an increase in GRDP, a decrease in the proportion of aging housing, and an increase in housing price fluctuations. However, the effectiveness of these effects varies between metropolitan and non-metropolitan areas. Therefore, this study suggests the significance of providing stronger tax incentives for housing URPs in non-metropolitan areas to encourage active projects and foster balanced regional development in South Korea. |
| first_indexed | 2024-03-10T22:33:18Z |
| format | Article |
| id | doaj.art-b304ee4f205642ef88c48df2e68524dd |
| institution | Directory Open Access Journal |
| issn | 2073-445X |
| language | English |
| last_indexed | 2024-03-10T22:33:18Z |
| publishDate | 2023-09-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Land |
| spelling | doaj.art-b304ee4f205642ef88c48df2e68524dd2023-11-19T11:35:04ZengMDPI AGLand2073-445X2023-09-01129180110.3390/land12091801Effects of Tax Incentive Policies for Land Use on Local Socioeconomic Conditions: A Case of Tax Policies for Urban Regeneration Projects in Republic of KoreaJiSun Chung0SungMan Yoon1The Graduate School of Science in Taxation, University of Seoul, Seoul 02504, Republic of KoreaDepartment of Business Administration, Seoul National University of Science and Technology, Seoul 01811, Republic of KoreaSouth Korea has implemented several housing urban regeneration projects (URPs) and offers various tax incentives to support these efforts. However, the reality is that there is insufficient empirical evidence to determine whether these incentives have a socioeconomic impact on URPs. The aim of this study is to examine the effects of tax incentives related to urban regeneration projects (URPTAX) on local socioeconomic factors, such as Gross Regional Domestic Product (GRDP), aging housing reduction, and housing prices. Fixed-effect models and cost–benefit analysis methods were employed in the study. The results demonstrate the following outcomes. Firstly, URPTAX positively contributes to an increase in GRDP, a decrease in the proportion of aging housing, and an increase in housing price fluctuations. However, the effectiveness of these effects varies between metropolitan and non-metropolitan areas. Therefore, this study suggests the significance of providing stronger tax incentives for housing URPs in non-metropolitan areas to encourage active projects and foster balanced regional development in South Korea.https://www.mdpi.com/2073-445X/12/9/1801housing urban regeneration projectstax incentivessocioeconomic factorsGross Regional Domestic Productaging housing reductionhousing prices |
| spellingShingle | JiSun Chung SungMan Yoon Effects of Tax Incentive Policies for Land Use on Local Socioeconomic Conditions: A Case of Tax Policies for Urban Regeneration Projects in Republic of Korea Land housing urban regeneration projects tax incentives socioeconomic factors Gross Regional Domestic Product aging housing reduction housing prices |
| title | Effects of Tax Incentive Policies for Land Use on Local Socioeconomic Conditions: A Case of Tax Policies for Urban Regeneration Projects in Republic of Korea |
| title_full | Effects of Tax Incentive Policies for Land Use on Local Socioeconomic Conditions: A Case of Tax Policies for Urban Regeneration Projects in Republic of Korea |
| title_fullStr | Effects of Tax Incentive Policies for Land Use on Local Socioeconomic Conditions: A Case of Tax Policies for Urban Regeneration Projects in Republic of Korea |
| title_full_unstemmed | Effects of Tax Incentive Policies for Land Use on Local Socioeconomic Conditions: A Case of Tax Policies for Urban Regeneration Projects in Republic of Korea |
| title_short | Effects of Tax Incentive Policies for Land Use on Local Socioeconomic Conditions: A Case of Tax Policies for Urban Regeneration Projects in Republic of Korea |
| title_sort | effects of tax incentive policies for land use on local socioeconomic conditions a case of tax policies for urban regeneration projects in republic of korea |
| topic | housing urban regeneration projects tax incentives socioeconomic factors Gross Regional Domestic Product aging housing reduction housing prices |
| url | https://www.mdpi.com/2073-445X/12/9/1801 |
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