Intensive Tax Investigation on Habitual Speculators

The South Korean government will take strong measures against activities related to real estate speculation, said Deputy Prime Minister and Minister of Finance and Economy Han Duck-soo. He added that based on thorough analysis on house transaction reports, false reporters would be charged with penalty and reinforced investigation would be performed on suspicious cases.

“The National Tax Service (NTS) has already pursued investigations on habitual real estate speculators,” Minister Han told the reporters at a regular briefing held at the Gwacheon Government Complex.

He also added that the government has paid consistent attention to the real estate market where the price shows rises in particular areas, mainly led by Bundang in Seongnam, the Gyeonggi province, and the reconstruction apartments of the Gangnam area. “There are no additional measures under consideration to restrain speculation for now, but there will be if decided necessary.”

“Since a unilateral restraining measure alone won’t stop the increase in the real estate market, more residential areas with positive advantages will ultimately be provided,” he said.

According to Han, potential candidates for such a provision would be metropolitan areas. “Other than Yangju, Paju, and Pangyo, there are suitable areas in the suburbs of Seoul, such as the Seoul Airport area or the development restriction areas between Gwacheon and Anyang in the Gyeonggi province,” he said.

However, the ministry commented that Han only explained a general idea and that currently there is no plan related to the Seoul Airport due to environmental reasons.

Han, regarding the actions by local government agencies to decrease the property tax rate, stated that he would consult with the Ministry of Government Administration and Home Affairs, once the ministry prepares clearer measures.

Chi-Young Shin higgledy@donga.com