South Korea Considers Raising Property Ownership Tax

South Korea’s Deputy Minister of Finance and Economy, Lee Hyeong‑il, said on 18 October 2025 that the government is reviewing a possible increase in property ownership tax. The comment was made in a radio interview in Seoul. No final decision has been taken yet.

The review is being carried out by a newly created task force that will assess market impact and tax fairness. Recent measures also expanded land‑transaction permit zones and tightened mortgage rules with caps of 600 million, 400 million and 200 million won. The ministry stresses that tax would be used only as a last‑resort tool and must be applied cautiously.

An increase could serve as a lever to stabilize house prices, but officials expect only limited effect on the jeonse market (long‑term lease system unique to Korea). Because the policy is still under comprehensive study, property owners and market participants are advised to await the final ruling.