(C) MBC

CHANGWON, South Korea — Shincheonji Church of Jesus, a controversial religious group that has failed to obtain official "religious corporation" status from the South Korean government, has reportedly avoided billions of won in taxes following a major real estate acquisition.

According to recent investigations, the group saved an estimated 1.6 billion KRW (approx. $1.2 million USD) in acquisition taxes alone after purchasing a 40.3 billion KRW temple complex in Changwon last year. This has sparked a heated debate over the broad interpretation of "religious tax exemptions" and its impact on market fairness.

The Loophole: "Status" vs. "Practice"
Despite not being a legally registered religious corporation, the Uichang-gu district office in Changwon granted the exemption based on the Restriction of Special Local Taxation Act.

Local authorities justified the move by stating that the group provided internal documents, such as bylaws and meeting minutes, to prove its religious activities. "Current laws do not strictly limit tax benefits only to registered corporations," a provincial official explained. "Even unregistered groups can qualify if their primary purpose is deemed religious."

The Transaction Details
The property in question, the Masan Church of the Shincheonji Busan James Tribe, was acquired in May 2024 from "Company A," a private developer.

The Price: 40.3 billion KRW.
The Benefit: Full exemption from acquisition tax (4%) and ongoing property taxes.
The Connection: Company A had previously purchased state-owned land through a private contract to complete the site, and Shincheonji was found to have provided a 26.3 billion KRW long-term loan to the developer before the final purchase.

"An Uneven Playing Field" in the Real Estate Market
The Investment Banking (IB) sector is raising concerns that these broad exemptions create a "tilted playing field."

While commercial developers must factor in heavy tax burdens when bidding for land, religious groups can leverage tax savings as a financial buffer. An executive at a major securities firm noted, "From a capital market perspective, these tax exemptions act as a 'capital buffer' for religious groups, giving them a structural advantage over general enterprises in land auctions and development."

Lack of Oversight
The Ministry of Culture, Sports, and Tourism, along with South Gyeongsang Province, confirmed that Shincheonji remains unregistered as a formal religious corporation under their jurisdiction. Critics argue that allowing such large-scale tax breaks to a group outside official government oversight raises questions about fiscal transparency and fairness.

Local authorities maintained that they would monitor the site to ensure it is used strictly for religious purposes, warning that any commercial diversion would lead to a retroactive tax levy.