Easy Brief

Originally, the government capped apartment pre-sale prices in popular areas like Gangnam to control housing prices. However, unregulated neighborhoods raised prices as construction and land costs increased, creating a bizarre situation where they became more expensive than Gangnam.

Recently, some non-Gangnam apartments in Seoul have exceeded 70 million won per pyeong. Meanwhile, regulated Gangnam has become a 'lottery' where winning a bid guarantees hundreds of millions of won in profit. Unregulated areas are too expensive, while regulated areas are too competitive.

This is tough news for parents trying to help their children buy a home or those considering moving. Rising pre-sale prices can drive up the cost of older surrounding apartments, increasing the housing burden. Careful comparison with market prices is essential when applying for housing.

With household debt rising, the government is strictly limiting loans. However, there are concerns this could cause a 'lock-in' effect, where both buyers and sellers retreat, drying up the housing supply.

To solve this, the government will release about 12,000 more homes this year. The plan is to speed up public housing supply and adjust some regulations to encourage smooth transactions.

This is good news for those planning to buy or sell a home. More supply can prevent sudden price spikes and make it slightly easier to find a new place to move into.

We must wait to see if prices actually stabilize as promised. Since loan rules remain strict, it's crucial to plan your finances carefully according to your budget.

The government introduced strict measures to curb rising household debt. The goal is to prevent multiple homeowners from keeping their loans to buy more properties.

Starting the 17th, multiple apartment owners in the capital or regulated areas cannot extend their mortgages. They must repay the loan in full or sell the house.

This can be a heavy financial burden for families owning multiple homes. However, if there is a tenant, you have until the lease ends, so check the dates carefully.

Ongoing war crises in the Middle East have destabilized the global economy. This has driven up inflation and altered currency values, causing Korean banks to raise their lending rates.

The upper limit of commercial bank mortgage rates has surpassed 7%. Rates that were just 4-5% recently have risen sharply, significantly increasing monthly interest payments.

Younger generations who borrowed heavily to buy homes face massive living cost burdens. Reduced disposable income could worsen market conditions, raising concerns for the broader economy.

High interest rates will likely continue unless the Middle East stabilizes. Borrowers must wisely reduce spending or revise repayment plans in case rates rise further.

The war in the Middle East has destabilized the global economy. As oil prices rise and inflation worsens, money is flocking to safe assets, causing global interest rates to surge.

Korean banks have also raised their mortgage rates in response. With fixed rates exceeding 7%, the interest burden on borrowers has become noticeably heavier, a stark contrast to the 4-5% range seen just recently.

Higher monthly interest payments mean less money for living expenses. Parents are especially worried if their children took out large loans to buy homes. For now, it is wise to reduce spending and monitor the situation rather than making risky investments.

A poll was conducted to see how the public evaluates the government's real estate measures. It asked about the president's overall performance and thoughts on housing policies that affect daily life.

The survey shows President Lee's approval rating at 65%, indicating strong support. The most notable aspect is the real estate policy, with over 50% positive responses—the highest in 13 years, driven by growing faith in housing price stability.

High satisfaction with real estate policies means many feel their housing environment is stabilizing. With the government gaining momentum, the trend of stabilizing housing prices is likely to continue, which is useful to note for future moving or home-buying plans.

Calls to curb speculation and stabilize housing prices are growing. In response, the government is considering new measures timed with the end of tax benefits for multiple homeowners in May.

The main point is that 'property taxes' for those owning multiple homes may rise. This is an annual tax paid just for owning property. The government vowed to use all means, including tax and loan rules, to block speculation.

If you own multiple homes, your annual tax burden could increase significantly. Those planning to sell should carefully check how the tax system changes.

Specific tax hike proposals and real estate regulations will be announced after May, so it is advisable to keep a close eye on government announcements.

A recent study compared South Korea's property tax levels with other countries. It gained attention when President Lee Jae-myung shared a related article on social media, showing his interest.

According to the study, South Korea's effective property tax rate is 0.15%, which is only half of the OECD average. Compared to major advanced countries like the US and the UK, the tax burden is quite low. It was 0.18% in 2022, but it dropped to 0.15% due to the tax reduction policies implemented by the previous Yoon Suk-yeol administration.

Our taxes won't go up immediately. The Blue House drew a line, stating that raising property taxes would be the last issue to consider. However, since the President personally showed interest, we need to watch how the property tax system might change in the future.

Recently, media raised suspicions of 'daddy's chance' after candidate Kim Byung-wook's son bought a Gangnam apartment for 2.8 billion won, claiming the source of 1.2 billion won was unclear.

Kim clarified that his son and daughter-in-law are dual-income professionals who have earned over 1.7 billion won. He emphasized that the 690 million won borrowed from parents is legally sound, as they signed a formal promissory note and regularly pay interest. Combined with bank loans and his daughter-in-law's savings, their assets are more than enough to cover the apartment.

This case highlights the importance of leaving transparent transaction records, such as writing formal promissory notes and exchanging interest, to avoid tax audits or controversies over illegal gifting when buying a house or lending money to children.

Recently, jeonse (lump-sum deposit) prices for Seoul apartments have surged, and bank loans have become stricter. Furthermore, regulations requiring buyers to live in the properties they purchase have significantly reduced the supply of new rental homes.

For these reasons, one in two Seoul apartment renters gave up moving and renewed their current leases this year. In March, renewals exceeded 50%. As raising large lump sums becomes harder, more people are opting for monthly rent over jeonse when signing new contracts.

Finding a new jeonse home for your children or acquaintances may become tougher than before. Shifting from jeonse to monthly rent increases the monthly housing cost burden, so it's advisable to plan living expenses more carefully.

The government is showing strong resolve to stabilize housing prices, a major public concern. Learning from past scandals involving officials' real estate speculation, they decided that policymakers must be clean first.

President Lee Jae-myung ordered presidential aides and senior officials to sell all but one of their homes. Notably, officials directly handling real estate policies will be excluded from their duties if they own multiple homes. Currently, 12 senior presidential secretaries own multiple homes and are rushing to sell them.

There were concerns that policymakers with multiple homes would hesitate to lower housing prices. This measure is expected to make government real estate policies more transparent and help stabilize housing prices for ordinary citizens.

The investigation into multiple-home owners will expand across all government ministries. Once officials finish selling their properties, stronger housing stabilization measures are expected to be announced.

Over the past five years, the number of Comprehensive Real Estate Tax payers and the tax amount have fluctuated wildly, surging and then dropping sharply. According to parliamentary data, tax collection exceeded 6 trillion won in 2022 but plummeted to the 4 trillion won range in 2024.

The reason for this 'rubber band' fluctuation is that government policies and assessed values (the standard for taxation) changed more frequently than actual housing prices. When the assessed value rises, taxes surge, and when it falls, taxes drop sharply. Consequently, critics point out that it is too difficult for citizens to predict how much tax they will have to pay next year.

Homeowners may feel anxious that their annual taxes could suddenly skyrocket. In particular, for seniors without a steady income after retirement, a sudden tax increase can be a significant burden on their living expenses.

Because highly volatile taxes cause public anxiety, the National Assembly and the government are expected to begin discussions to reform the Comprehensive Real Estate Tax system to make it more stable.

With housing price stabilization becoming a key national task, the transparency of policymakers has grown crucial. If officials owning multiple homes create policies, the public may struggle to fully trust them.

President Lee Jae-myung ordered that officials owning multiple homes or high-priced properties for speculation be completely excluded from real estate policy duties. They will be removed from discussing, drafting, and approving policies. This shows a strong will to prevent those who benefit from rising house prices from making or neglecting related systems.

The policymaking process will become more transparent, raising expectations for fair housing stabilization policies for ordinary citizens. This could bring hope to average people dreaming of owning their own homes.

Multi-home officials in relevant departments, such as the Blue House and the Ministry of Land, Infrastructure and Transport, are expected to be reassigned to other departments or have their duties changed.

The government is considering various policies to stabilize housing prices. There were concerns that if policymakers own multiple homes, they might unconsciously create rules that favor themselves.

President Lee Jae-myung issued a firm directive to completely exclude officials owning multiple or high-priced homes from all real estate policymaking processes. He emphasized strict sanctions against those who exploit policies for speculation.

With personal interests removed from policymaking, future real estate measures will become much fairer. This is expected to positively impact overall housing price stability and help younger generations buy homes.

Work will soon begin to establish specific criteria and investigate exactly which officials from which departments will be excluded from these duties.

As mortgage regulations tightened, many people took out 'business loans' to buy homes instead. Such illicit loans surged by 35% in the second half of last year alone.

President Lee Jae-myung strongly warned those who misused business loans for real estate. He emphasized that it is better to voluntarily repay the loans before being caught, charged with fraud, and subjected to tax audits.

If you bought real estate with a business loan, you must repay it quickly to avoid severe penalties. As the government plans to crack down on illicit loans, getting a mortgage will likely become even stricter.

The National Tax Service and the Financial Supervisory Service will jointly investigate all suspicious cases. Those caught may be forced to return the loan money.

Recently, people borrowing money from banks for business and using it to buy houses or land has become a problem. The loan was used for a different purpose than originally intended.

President Lee Jae-myung told those who used business loans for real estate speculation to repay the money voluntarily. He warned that failure to do so could lead to tax audits, fraud charges, and forced loan recalls. The government plans to thoroughly check loan records and strictly handle any wrongdoings.

You must be careful, as using a business loan for unintended purposes can lead to severe penalties. If you have family or friends in business, advise them to use loans strictly for their designated purposes.

The National Tax Service and the Financial Supervisory Service will jointly conduct a thorough investigation of loan records, leading to strong measures against those who obtained loans illegally.

The Seoul-Yangpyeong Highway was originally planned to ease traffic congestion in the capital area. However, the project was completely halted in 2023 due to controversy over route changes that allegedly favored specific individuals.

Under President Lee Jae-myung's order, the highway project is resuming after about 2 years and 8 months. The government will commission a new feasibility study to review the routes from scratch. The goal is to set a budget plan by the first half of this year, begin construction in late 2029, and complete it by 2035.

Once the highway opens, traveling to eastern capital areas like Hanam, Gwangju, and Yangpyeong will be much faster and more convenient. It is expected to significantly reduce the severe traffic congestion anticipated when residents start moving into the Gyosan New Town in 2029.

The biggest focus moving forward will be determining the most reasonable and fair route through the new feasibility study.

Recently, apartment prices in Seoul, especially in Gangnam, have started to drop slightly. This is because people who own multiple homes are rushing to sell them to reduce their tax burden.[1.2]

This downward trend has spread beyond Gangnam to the 'Han River Belt' areas like Seongdong and Dongjak districts. Housing prices in Seongdong and Dongjak have turned downward for the first time in about two years and one year, respectively. Even areas with expensive apartments are seeing price drops.

If you plan to buy or sell a home, you should note that the market atmosphere is changing. In particular, the 'assessed value,' which is the standard for taxes, has risen significantly, likely increasing the property tax burden on homeowners.

Since tax benefits for multiple-home owners are scheduled to end in May, many people are trying to sell their homes before then, which could cause housing prices to drop further for the time being.

Every spring, the government surveys apartment prices nationwide and announces 'assessed values' to calculate taxes. As actual apartment prices in major Seoul areas rose significantly last year, the government's announced values this year have also jumped.

This year, Seoul's apartment assessed values rose by over 18% on average. Popular areas around the Han River, such as Seongdong, Gangnam, and Mapo districts, surged by 20-30%. In contrast, Dobong and Gangbuk districts only rose by about 2%, showing huge regional gaps within Seoul.

Assessed values serve as the standard for levying taxes like property tax and comprehensive real estate tax. Homeowners in areas with steep increases may face significantly higher taxes this year. It's also used to calculate basic pensions and health insurance premiums, so careful checking is advised.

The assessed values of apartments nationwide can be checked online in advance. They will be finalized in late June after a feedback gathering process.

The government announces the 'assessed value' of multi-family housing like apartments nationwide every January 1st. This price is a key standard for calculating property taxes and health insurance premiums.

This year, the national average assessed value rose by 9.1%, with Seoul jumping 18.7%. Areas with surging housing prices, like the three Gangnam districts, saw increases over 24%. As the base price rises, 170,000 more households nationwide must now pay the 'comprehensive real estate tax' levied on expensive homes.

Homeowners may face higher property and comprehensive real estate tax burdens this year. Notably, rising assessed values can also increase health insurance premiums for retired seniors enrolled as regional subscribers, so careful checking is advised.

The real estate market may see more listings as landlords feeling the tax burden try to sell their homes. The government plans to finalize the assessed values in late April after gathering public feedback.

Every spring, the government announces 'official property prices,' which serve as the standard for calculating taxes and health insurance premiums [1.3]. This year, nationwide apartment prices were revealed, and with Seoul's housing prices rising significantly, the official prices have also jumped.

This year, the official prices of Seoul apartments rose by an average of 18.7%, marking the third-highest increase in history. In particular, the three Gangnam districts (Gangnam, Seocho, Songpa) and areas around the Han River (Seongdong, Yongsan) surged by over 20%. Meanwhile, regions outside Seoul only saw an average increase of around 3%, showing a stark regional gap.

When official prices rise, homeowners face higher annual property and comprehensive real estate taxes. Owners of expensive apartments in the Gangnam area may have to pay thousands of dollars more in taxes compared to last year. Also, since official prices are used to calculate health insurance premiums and basic pensions, residents in areas with soaring home prices should check their status carefully.

The government will accept objections from homeowners until late May and finalize the prices in late June. As there may be pushback from those facing sudden tax hikes, the situation requires close monitoring.

With Seoul's housing prices soaring, the city is offering affordable homes by selling only the building and excluding land costs.

Magok's new 30-pyeong units cost around 400 million KRW. Since SH owns the land, residents pay a separate monthly land lease fee.

It's a great chance for first-time buyers to own a home in Seoul. However, resale conditions should be checked carefully.

Previously, move-in notifications only took effect at midnight the following day. Landlords exploited this gap by taking out secret loans on the day a tenant moved in, leading to widespread 'Jeonse' deposit fraud.

Now, the tenant's legal 'opposing power' (priority right) is established the moment they file a move-in report. Because they are protected from that exact time, their deposit will not lose priority even if the landlord takes a loan later.

This provides peace of mind for those worried about losing their deposits when moving. By simply reporting the move on the same day, tenants are immediately protected, making the rental process much safer.

As the weather warms up, many people suffer from cigarette smoke drifting up from downstairs neighbors when they open their windows. This has become a significant social issue, often escalating into major disputes between neighbors.

While smoking in hallways or elevators can result in fines, it is currently difficult to legally restrict smoking in private spaces like balconies or bathrooms. Recently, the National Assembly began discussing a bill that would allow for smoking bans and fines within private units if two-thirds of residents agree.

Since immediate legal punishment is difficult, you should request a factual investigation through the apartment management office if the damage is severe. Although not legally binding, resolving the issue through dialogue and management mediation is currently the most realistic approach.