In five years, 8,000 S. Korean homes snapped by thirty buyers

Despite the South Korean government’s efforts to control demand for multiple home ownership, just 30 individuals purchased 8,000 homes in the country in the past five and half years.

According to a lawmaker of the main opposition Democratic Party, Min Hong-chul, based on data submitted from the land ministry, the 30 home buyers spent a total of almost 1.2 trillion won ($900 million) on buying homes between 2018 and June 2023.

On Wednesday, Min said in his blog that the real estate speculators were snapping up homes in the greater Seoul area. Min is a member of a parliamentary committee that holds annual audits for government agencies, including the land ministry.

In 2021, the South Korean government raised the capital gains tax from multiple homeowners in Seoul’s popular areas to a maximum of 75%, from almost 40% in 2016. South Korea also introduced higher annual ownership tax and home purchase tax for those who own more than two houses.

Statistics obtained by the Korea Real Estate Board show that between June 2018 and June 2023, home prices in the country increased by 37%. Prices increased by 44% in Seoul and 51% in Gyeonggi.

The majority of buyers concentrated on buying homes in greater Seoul, including the metropolitan areas of Incheon and Gyeonggi, where prices and demand are high. During that time, the top three buyers acquired a combined 2,194 houses in the region. According to data from the land ministry, the largest buyer, who is in their 50s, bought 792 homes for 115.7 billion won.