South Korea Debates 'Super-Luxury' Home Definition Amid Tax Reform Divide

Ahead of a national forum on real estate policy hosted by President Yoon Suk Yeol on July 23, 2026, public opinion has been gathered regarding housing supply and definitions of high-value properties. A key point of discussion is the classification of "super-luxury" homes, with proposals suggesting a price range of 3 billion to 5 billion won (approximately $2.1 to $3.5 million USD) as the benchmark.

Lee Hyung-il, the First Vice Minister of Economy and Finance, presented these findings at the 'Real Estate Policy National Forum' held in Seoul. The results are based on opinions collected from a prior discussion on expanding housing supply for national housing stability, organized by the Ministry of Land, Infrastructure, and Transport, as well as online public proposals.

Significant divergence exists regarding the reform of property taxes and transaction taxes. Some argue for reducing excessive tax benefits to curb the preference for owning a single, high-value property ('똘똘한 한 채'). Conversely, others express caution, emphasizing that taxes on unrealized gains could be passed on to renters, potentially exacerbating housing affordability issues.

The forum aims to address these complex issues, seeking a consensus on policies that balance housing supply, tax structures, and market stability. The differing viewpoints highlight the challenges in formulating real estate policies that satisfy diverse economic interests and address public concerns about affordability and fairness.