The government has announced a tax reform plan aimed at reducing the tax burden for homeowners with one residence for actual living purposes while increasing taxes on high-value properties and multiple homeowners. This has drawn attention to the real estate holdings of key economic officials who spearheaded the initiative.
According to the '2026 Tax Reform Plan' released by the government, the basic deduction for the comprehensive real estate tax for homeowners with one residence will increase from 1.2 billion won to 1.4 billion won. Homeowners with a property valued at approximately 2 billion won or less are expected to see a reduction or exemption in their property tax burden. Conversely, the government plans to gradually increase the property tax and capital gains tax for high-value properties and multiple homeowners.
Deputy Prime Minister and Minister of Economy Koo Yun-cheol stated during the announcement, "We will establish a housing market centered on actual residence under the principle that a house is not just a purchase but a place to live."
Following this announcement, the real estate holdings of economic policy leaders, including Deputy Prime Minister Koo, have come under scrutiny.
Current public records reveal that Koo Yun-cheol, Financial Services Commission Chairman Lee Ok-yeon, and Presidential Office Policy Chief Kim Yong-beom all own properties that have significantly appreciated in value due to past reconstruction projects. As of August 4, 2026, there have been no reports of these properties being sold or ownership changing.
Deputy Prime Minister Koo holds a property in the Daechi The First I-Park in Gangnam, Seoul, under his spouse's name. This property was acquired at auction for approximately 891 million won in 2013 before reconstruction, transforming from a 56.6 square meter unit in the Gaepo Jugong 1 Complex. According to public records, it was not occupied for actual residence before reconstruction and is still owned. The current market value is estimated to be around 5 billion won.
Koo previously owned up to four properties but sold three in compliance with recommendations for high-ranking officials to dispose of multiple homes during the Moon Jae-in administration, leaving him with the Gangnam apartment.
Chairman Lee Ok-yeon also purchased a similar unit in the same complex during the same period. He acquired a 58.08 square meter unit in Gaepo Jugong 1 Complex for 850 million won in 2013, just before being dispatched to the United Nations in Geneva. He has not lived in the apartment since its purchase in 2013, as demolition began in 2018. His actual residences are in Daechi-dong, Dogok-dong, or a rental in Suji, Yongin. The apartment has since been reconstructed into the Daechi The First I-Park, with a current market value of 4.7 billion to 5 billion won.
Policy Chief Kim Yong-beom co-owns a property in Seocho Raemian, Seocho District, with his spouse. He acquired the membership rights during the reconstruction process and has reportedly not lived in the apartment since its completion due to work with international organizations, opting to rent it out instead. The current market value of this apartment is estimated at around 3 billion won.
Historically, apartment prices in Seoul have varied significantly across different administrations. According to data from the Citizens' Coalition for Economic Justice and EBS, the average price of apartments in Seoul rose from about 300 million won to 530 million won during the Roh Moo-hyun administration, an increase of approximately 80%. Under the Lee Myung-bak administration, prices fell by about 10%. The Park Geun-hye administration saw a rise of about 21%, while the Moon Jae-in administration experienced a dramatic increase of 119%, with prices soaring from 580 million won to 1.26 billion won. The Yoon Suk-yeol administration recorded only a 1% increase, while the Lee Jae-myung administration saw a rise of about 23% within its first year.
For instance, the Hyundai Apartment in Apgujeong, Gangnam, saw its price rise from around 1.5 billion won in 2017 during the Moon Jae-in administration to approximately 7.5 billion won in 2022, marking a staggering increase of 6 billion won, or 400%.
* This article has been translated by AI.
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