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South Korea ultra‑high‑value home tax reforms

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2026-07-26 10:09 UTC → 2026-07-29 03:44 UTC · added removed

In mid‑July 2026 the South Korean government announced plans to raise property taxes on primary residences priced at between 20 billion to and 50 billion won. The proposal, presented by presidential policy chief Kim Yong‑beom, would apply impose a higher holding tax to holding‑tax rate on ultra‑high‑value homes while temporarily lowering the capital‑gains tax to encourage stimulate sales. The announcement came as move followed record‑breaking apartment transactions were reported in Seoul’s Gangnam district, underscoring the market pressure on high‑price, low‑supply units. district. A week later, later officials highlighted the scale of existing tax deductions for such properties. Data from 2024 showed that deductions under the comprehensive real‑estate tax (CET) had totalled 461 billion won, won in 2024, with the bulk benefiting owners 87.9 % of expensive apartments the benefit flowing to Seoul properties and the top‑100 deductions concentrated in Gangnam and Yongsan. The National Tax Service warned that the long‑term holding deduction was regressive and fueled a “one smart house” incentive. Prime Minister Han Seong‑suk’s administration outlined a forthcoming reform package slated for early February, proposing new price thresholds around 30‑50 billion won, shifting the tax base from the number of homes to their market value, and curbing generous long‑term holding deductions. Further details emerged at the end of July. The evolving policy aims government began reviewing revisions to increase the long‑term holding special deduction, proposing to scrap the 10‑year holding requirement and cap the deduction at 1 billion won. Simulations suggest capital‑gains tax burden on ultra‑high‑value single‑family homes apartments above 40 billion won could rise two‑to‑five‑fold, with projected tax bills for complexes such as 압구정현대 and dampen incentives that have driven price inflation 한남더힐 jumping from a few billion won to over 15 billion and 31 billion won respectively. A survey found 56 % of respondents expect house prices to rise in Seoul’s premium districts. the second half of the year, while record holding‑tax payments on high‑value units have already risen 40 % year‑on‑year. Analysts warn that further adjustments to tax rates and assessment ratios could double the burden for the most expensive properties. President Lee Jae‑myung has called for raising the effective holding‑tax rate on ultra‑luxury homes to about 1 %.

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  1. 2026-07-29 03:44 UTC South Korea ultra‑high‑value home tax reforms
  2. 2026-07-26 10:09 UTC South Korea ultra‑high‑value home tax reforms

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