Participants raise their hands to ask South Korean President Lee Jae Myung (C) questions during the National Grand Debate on Real Estate Policy in Seoul, South Korea, 23 July 2026. The forum, broadcast live by KBS, brought together members of the public, experts and government officials to discuss housing supply, lending regulations and possible reforms to property ownership and transaction taxes amid rising home prices. Photo by YONHAP / EPA
Aug. 3 (Asia Today) -- South Korea plans to overhaul its comprehensive real estate holding tax by placing greater emphasis on property values and whether owners live in their homes rather than on the number of homes they own.
The government said the changes are intended to reduce taxes for people who live in a single home while raising the burden on expensive and non-owner-occupied properties.
The proposal also targets a practice commonly described in South Korea as owning "one smart home," in which investors concentrate their wealth in a single premium property to receive tax advantages available to single-home owners.
The Ministry of Finance and Economy announced the measures Monday as part of its 2026 tax reform plan.
