In response to the surge in pet ownership and the associated social challenges, the South Korean government plans to introduce a unique tax—the pet tax—beginning in 2025.
According to the Ministry of Agriculture, Food and Rural Affairs, there were 6.02 million households with pets in South Korea as of 2022, accounting for 25.4% of all households. This means that more than one in four families owns a pet. The government anticipates that by 2025, the number of pets in South Korea will reach 15 million.
However, this increase in pet ownership has also led to various social issues, including pet abandonment, public health concerns, and management difficulties, placing a heavy burden on society.
In 2023 alone, over 113,000 animals were abandoned nationwide. This has exacerbated urban public health issues, as managing pet waste, vaccinations, and disease prevention require significant public resources, increasing the financial burden on the government and society.
In recent years, there has been a growing call within South Korea to make pet owners, who benefit from government policies, bear some of the related costs to alleviate the overall burden on society. Many believe that pet owners should be held accountable for the social impacts of their pets. Additionally, the pet tax could provide a stable source of funding for the government, which could be used to improve shelter conditions, expand capacity, and support public welfare initiatives, ultimately enhancing animal welfare.
However, the actual implementation of the pet tax may prove challenging. South Korean media predict that pet owners facing additional tax payments may strongly oppose the measure, particularly single individuals and elderly households, who might be driven to abandon their pets due to increased financial strain.
Moreover, many are concerned that this tax policy could discourage some families from adopting pets, negatively impacting the burgeoning pet industry. In recent years, the pet economy has grown into a significant industry in South Korea, with the market size reaching 80 trillion won (approximately $56 billion) in 2022. The Ministry of Agriculture, Food and Rural Affairs projects that the pet market will expand to 150 trillion won (about $105 billion) by 2027. Industry stakeholders fear that this new tax could severely impact this emerging sector.