South Korea to raise property taxes on homes over $2.5 million

South Korea is set to overhaul its comprehensive real estate holding tax, with significant implications for high-value property owners starting next year. The proposed revisions, announced by the Ministry of Economy and Finance, will increase the tax burden for households owning homes valued at over 3.5 billion won (approximately $2.5 million USD).

The most substantial changes will affect owners of properties exceeding 4.6 billion won. These homeowners will see their comprehensive real estate holding tax rates climb from the current level to 1.5% in 2025, followed by a further increase to 2.0% in 2026. This dual increase is expected to lead to a substantial surge in the tax amount for these individuals.

Further adjustments are being considered for specific groups, including single homeowners aged 60 and above who have lived in their homes for at least 10 years. These provisions aim to provide some relief or modify the tax impact for long-term residents, though the exact details of these concessions are still under review as part of the broader tax reform package.