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Wealthy Seek Redevelopment Rights to Cut Property Taxes
🇰🇷 South Korea /Economy & Trade

Wealthy Seek Redevelopment Rights to Cut Property Taxes

From Chosun Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • Wealthy individuals are shifting investments to reconstruction and redevelopment rights for new apartments. This strategy aims to reduce property tax burdens while waiting for new constructions to complete.
  • Calculations show that for a luxury apartment worth approximately 3 billion won, the property tax difference over two years can exceed 22 million won depending on whether the property is demolished.
  • The government's plan to strengthen property taxes on ultra-high-priced homes is driving this trend among asset holders.

Asset holders are increasingly seeking rights to new apartments from reconstruction and redevelopment projects. This move comes as the government plans to tighten property taxes on ultra-high-priced homes. The appeal lies in reducing the tax burden during the construction period of new apartments after the original property is demolished.

For a luxury apartment valued at around 3 billion won, the property tax difference over two years can be substantial. The Chosun Ilbo reports that this gap can exceed 22 million won, depending on whether the existing building is demolished. This financial incentive is prompting wealthy individuals to explore these alternative property rights.

The government's enhanced property tax measures are directly influencing investment decisions. By shifting to redevelopment rights, wealthy individuals can effectively lower their tax liabilities, making it an attractive strategy in the current real estate climate.

DistantNews Editorial

Originally published by Chosun Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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