Seoul real estate trends show rising tax concerns and cash-heavy luxury purchases

Rising property values in Seoul and the metropolitan area have transformed inheritance and gift taxes from concerns for the wealthy into practical issues for middle-class workers and retirees. Experts from the former National Tax Service, Kang Jeong-ho and Kim Ju-seok, have released a guide titled ‘2026 Help Me! Inheritance and Gift Tax’ to address these complexities.

The authors warn that the National Tax Service utilizes advanced systems, such as the PCI (Property, Consumption and Income) analysis system, to track financial transactions, income changes, and credit card spending over a ten-year period. This allows authorities to identify discrepancies, such as children acquiring expensive housing or repaying loans without sufficient documented income.

In the real estate market, a trend has emerged where approximately 50% of semi-luxury apartment transactions in Seoul priced between 1.5 billion and 2.5 billion won are conducted without mortgages. This shift is attributed to tightened mortgage lending limits and a preference for ‘smart single homes’ in Seoul. Notably, over 30% of these buyers reside outside of Seoul, including areas like Dongtan, Songdo, and Icheon, often utilizing cash liquidity from liquidated financial assets to secure properties in the capital.