The South Korean government plans to amend the real estate tax law, increasing the tax burden on ultra-expensive homes and speculative properties, while lowering tax rates for owner-occupied homes, homes for working-class and middle-class households, and government-provided housing. It will also impose higher taxes on so-called “one property” (when wealth is concentrated in a single high-end home). The specific ultra-expensive home threshold and tax rate have not yet been determined.
Lee Jae-myung’s debate remarks: the policy dilemma of a smart apartment and the direction of the revisions
According to a national real estate policy debate held on July 23, 2026, at the KBS broadcast station in Yeouido-dong, Seoul, Lee Jae-myung, the president, said, “The original intention of policymakers is to respect and protect each family’s right to own a home,” but that “treating everyone the same regardless of housing prices has led people to buy only one home and profit from it.”
The government’s diagnosis is that the current property tax system adjusts tax burdens based on the number of properties, encouraging wealthy individuals to evade multiple restrictions and concentrate their assets into a single expensive apartment. This, in turn, channels demand into popular areas such as the Gangnam three districts and along the Han River, driving up prices in top-tier locations. Therefore, the revision direction is to impose a higher tax on “one property” (i.e., situations where wealth is concentrated in a single high-end home).
Current South Korea comprehensive real estate tax rates and basic deductions
Based on disclosures in the original text, the current tax rates and deductions under South Korea’s individual residential comprehensive real estate tax system are as follows:
Two homes and below: tax rate 0.5%~2.7%
Three homes and above: tax rate 0.5%~5.0% (but within the range where the tax base is below 1.2B won, the same tax rate as for two homes or fewer applies)
Basic deduction (single-person households; one home, and registered under one person’s name): 1.2B won
Basic deduction (other individuals): 900M won
Married couple jointly owning one home: each gets 900M won, for a total of 1.8B won
Expert assessment: different paths involving supply shortages, status symbolism, and tax-system reform
Based on viewpoints from three industry experts cited in the original text:
Kim Hyo-sun (KB Kookmin Bank’s chief real estate expert) said the fundamental reason people favor “smart homes” lies in supply shortages, imbalances between supply and demand, and regional polarization. “It is very difficult to solve this problem solely by strengthening property taxes on ultra-expensive homes.”
Kim In-wan (Kim In-wan Real Estate Economic Research Institute) noted that as long as restrictions on owners of multiple properties remain, people will continue to prefer a single smart home, and “this situation will continue for quite a long time.”
Nam Hye-woo (Woori Bank’s real estate research institute) suggested that if the gap in tax rates and deductions caused by differences in the number of homes is narrowed, and taxes are instead imposed based on the total asset value of real estate, “wealthy people would have room to choose multiple mid-range homes rather than insisting on purchasing a single ultra-expensive home, and this could reshape the market landscape.”
FAQ
What is the main direction of the South Korean government’s plan to revise the real estate tax law?
According to the original text, the government plans to increase property taxes on ultra-expensive homes and speculative housing, while lowering tax rates for owner-occupied homes and government-provided housing, and to impose higher taxes on “one property” (wealth concentrated in a single ultra-expensive home). The specific thresholds and tax rates have not yet been confirmed.
What are the tax rates for South Korea’s current individual residential comprehensive real estate tax?
According to the original text, homes up to two: 0.5%~2.7%; three or more: 0.5%~5.0%. The basic deduction is 1.2B won for single-person households, 900M won for other individuals, and 1.8B won for married couples jointly owning.
What are the main concerns of South Korean real estate experts about this round of tax reform?
Based on KB Kookmin Bank’s assessment of Kim Hyo-sun, the fundamental reason people prefer high-end homes is supply shortages and regional polarization; unless these issues are resolved, simply raising property taxes cannot curb demand. Woori Bank’s Nam Hye-woo instead recommends taxing based on the total price of residences rather than the number of units.
