South Korea to raise taxes on ultra‑high‑price and non‑resident homes

The South Korean government is preparing a tax reform that would increase the property‑holding tax on ultra‑high‑price homes—those with a public‑assessment value exceeding 1.2 billion won—and on homes owned by non‑residents. The plan also proposes to reshape the long‑term capital‑gains special deduction, shifting benefits toward primary‑residence owners rather than investors. Details are to be finalised after a series of public discussions and a presidential‑led debate, with an announcement expected by the end of the month.

Separately, officials note that the share of Seoul apartments priced above 15 billion won has risen to about 40 percent, double the level in 2021. This surge has prompted calls to adjust the high‑price housing thresholds used for various taxes, including the comprehensive real‑estate tax, acquisition tax and capital‑gains tax, to reflect current market conditions.