Nearly 200 South Korean preschoolers reported rental income last year

Nine infants under 12 months old were already reporting rental income from real estate in South Korea last year, according to tax data obtained from the National Tax Service. In total, 179 children aged five or younger reported rental income in 2024.

The figure included 15 two-year-olds, 33 three-year-olds, 51 four-year-olds and 71 five-year-olds. Average annual rental income ranged from 12.3 million won for two-year-olds to 18.4 million won for three-year-olds. Infants under 12 months reported an average of 14.7 million won, while four-year-olds averaged 14.7 million won and five-year-olds 15 million won.

The number of children aged five or younger reporting rental income has fluctuated in recent years. It stood at 252 in 2020, 238 in 2021, 250 in 2022 and 217 in 2023, before dropping below 200 in 2024. The 179 children represented about 0.01% of the 1.58 million children in that age group.

The properties generating the income were reportedly acquired from parents or grandparents before the children reached school age. Across all minors aged 18 or younger, 3,233 reported rental income in 2024. Their combined income reached 55.584 billion won, or about $40 million, with an average of 17.2 million won per person. Democratic Party lawmaker Moon Jin-seog said the pattern appeared connected to early inheritance and gifts. “The National Tax Service should examine the sources of funds used to acquire real estate held in minors’ names and closely scrutinize whether there have been any attempts to circumvent inheritance or gift tax rules,” he said.

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The National Tax Service should examine the sources of funds used to acquire real estate held in minors’ names and closely scrutinize whether there have been any attempts to circumvent inheritance or gift tax rules.