Foreign national C, whose source of income is unclear, acquired an apartment in Yongsan, Seoul, valued at tens of billions of won. According to the National Tax Service, this acquisition was made by succeeding the pre-sale conversion rights obtained by his father, a resident of Korea, and converting them into his name without compensation. In this process, C did not report the gift tax after acquiring the deposit that his father paid as a benefit. C's father also gifted tens of billions of won worth of overseas real estate to his spouse for free and provided funds for purchasing overseas real estate worth tens of billions of won through overseas financial accounts to other children.
The National Tax Service has initiated a tax investigation against C and his father for tax evasion related to the free succession of lease contracts and the investigation of the sources of funds for the family's domestic and overseas real estate purchases. Although C or other family members are liable to pay the gift tax, if they cannot pay due to lack of income, the father also incurs joint liability.
The National Tax Service announced on the 7th that it will launch focused tax investigations on foreign tax evaders who have acquired high-end apartments in the three districts of Gangnam (Gangnam, Seocho, Songpa), as well as in Mapo, Yongsan, and Seongdong.
According to the National Tax Service, the total number of real estate properties acquired by foreigners in Korea from 2022 to April 2025 is 26,244. By region, acquisitions were concentrated in Gyeonggi (9,808), Seoul (3,402), and Incheon (3,017). In Seoul, high-end apartments in the three districts of Gangnam and the Myeongdong-Songpa area accounted for a significant portion. Currently, although the government is implementing lending regulations for the metropolitan area and regulated zones to stabilize the real estate market, foreigners who can raise funds in their home countries can still purchase real estate regardless of lending regulations.
In response, the National Tax Service conducted a detailed analysis of the entire process of foreigners acquiring and holding high-end apartments in Korea. The analysis revealed that a significant number of foreigners utilized funds received through illegal means or evaded business income to raise acquisition funds. Many did not reside in the acquired apartments and rented them out, with a substantial number failing to properly report rental income.
The National Tax Service will conduct tax investigations on 49 individuals suspected of tax evasion related to real estate. The number of apartments acquired by these 49 individuals reaches over 230. It is estimated that the taxes they evaded amount to between 200 billion and 300 billion won.
The National Tax Service explained that during the analysis process, signs of illegal methods, such as money laundering, were also detected. There were instances where corporate loans received under the name of operating capital were used as funds for foreigners to acquire apartments.
Director General Min Joo-won stated, "We will thoroughly verify the process of foreigners acquiring apartments in Korea, just as we do for nationals," adding, "We will utilize all available means, including tracing financial accounts and forensic techniques, to impose legitimate taxes and trace the sources of funds to the end."
Director General Min continued, "In cooperation with relevant domestic agencies such as the Ministry of Land, Infrastructure and Transport, as well as overseas tax authorities, we will strongly address illegal tax evasion using domestic real estate," and added, "We will also review and propose improvements to address institutional gaps, such as ways to manage the housing acquisition status of foreigners on a household basis."