South Korean Tax Agency Finds 42% of High-Value Corporate Homes Used Privately by Owners' Families

South Korea's National Tax Service (NTS) has identified that a significant portion of high-value corporate-owned homes are being used for private purposes by the owner's families. NTS Commissioner Lim Gwang-hyun revealed that an inspection of 2,639 corporate-owned homes, each valued above 900 million won (approximately $680,000 USD) and subject to comprehensive real estate tax, found that about 42% were occupied or used privately by the owners' families.

Commissioner Lim Gwang-hyun disclosed these findings in a post titled 'Normalizing the Abnormal, We Will Correct the Practice of Emperor's Residences.' The inspection focused on properties where the official assessed value averaged over 2 billion won (approximately $1.5 million USD). The NTS's investigation aims to curb the misuse of corporate assets for personal benefit, a practice often referred to as 'Emperor's Residences' or 'private use of corporate housing.'

This initiative is part of the NTS's broader effort to ensure tax fairness and prevent tax evasion. By scrutinizing the use of high-value corporate properties, the tax authority seeks to identify instances where these assets are not genuinely used for business purposes but serve as private residences for the families of company executives or major shareholders. The NTS has stated that if evidence of tax evasion is confirmed through further investigation, tax probes will be initiated.

“

Approximately 42% of the 2,639 high-value corporate homes, which are subject to comprehensive real estate tax exceeding 900 million won in official prices, were found to be resided in or privately used by the owner's families.