Ko Korean multi-home residential property Loading... : Investor Sentiment and Bull/Bear Views

Lee Jang-won argues that simply holding multiple homes in Korea is becoming an unattractive strategy because the May 9 end of the transfer-tax surcharge deferral and heavier comprehensive real estate holding taxes will raise the cost of ownership. Owners should compare selling before the deadline, gifting to children, or restructuring instead of assuming they can just wait out the tax burden.

The suspension of the capital gains tax surcharge for multi-home owners ends on May 9. If it is not extended, two-home owners face a 20 percentage-point surcharge and three-or-more-home owners a 30 percentage-point surcharge on the basic tax rate, and they also lose the long-term holding deduction. Because the tax sale date depends on the balance payment or ownership transfer registration, not just the contract, owners must complete the sale before May 9 or prepare for much higher tax. This creates a strong incentive to sell or reduce multi-home residential property before the deadline, potentially increasing family transactions and distorting reported apartment prices.