South Korea's tax authorities announced Thursday they will investigate more than 2,000 high-value property transfers in upscale Seoul areas over suspected tax evasion. The probe comes amid tighter regulations on real estate lending. Apartment prices have surged sharply in districts along the Han River, fueling speculation.
The National Tax Service (NTS) said Thursday it will audit 2,077 property-transfer cases in Seoul's Gangnam, Mapo, Yongsan and Seongsu districts. These cases involve real estate gifts where the statutory gift tax filing deadline passed between January and July this year.
"Among wealthy individuals, there has been a sharp rise in gifting high-value homes instead of selling them as a way to avoid regulations and bypass lending restrictions," the NTS said. The agency also noted that demand for owning a single high-value home has increased as stricter lending rules make it harder to secure mortgages.
Investigators will examine tax evasion schemes during the acquisition and transfer of apartments, including cases where children take out nominal loans to purchase homes while secretly receiving cash from their parents.
Apartment prices in Seoul have climbed sharply in recent months, especially in the four districts along the Han River. The surge has fueled speculative buying and driven prices higher, posing a policy challenge for the new administration of President Lee Jae Myung.