# Korea's Tax Overhaul Zeroes In on Costly Second Homes While Sparing Owner-Occupiers > The government unveiled a property tax package that raises the burden on high-value and multiple homes, led by heavier taxation on properties worth more than 4 billion won, while lifting the deduction for people who live in the single home they own. - Source: Korea First - Canonical URL: https://koreafirst.tv/article/korea-s-tax-overhaul-zeroes-in-on-costly-second-homes-while-sparing-owner-occupiers - Author: Korea First Staff - Section: Money - Published: 2026-08-03T11:44:33.740Z - Updated: 2026-08-03T11:44:33.740Z - Tags: property tax, real estate, Koo Yun-cheol, housing policy, multiple-home owners, capital gains tax --- The Korean government has laid out a tax overhaul aimed squarely at expensive homes that owners do not live in, sharpening the levy on high-value and multiple properties while easing the burden for those who occupy the one home they own. The centerpiece is a higher tax on the most valuable homes. Finance Minister Koo Yun-cheol said the government would bring taxation on homes worth more than 4 billion won closer to normal levels and curb excessive tax benefits, with properties valued between 4 and 5 billion won, roughly 2.8 million dollars, singled out for heavier treatment. ## Rewarding those who live in their homes The plan draws a sharp line between owner-occupiers and everyone else. The basic deduction for a single-home owner would rise from 1.2 billion won to 1.4 billion if the owner lives in the property, while a home its owner does not occupy would get a smaller deduction of 900 million won. The gap widens for those holding several properties. The deduction for multiple-home owners would fall from 900 million won to 400 million, with up to 500 million more available under conditions, a structure designed to press hardest on portfolios of homes held as investments. ## Raising the base the tax is figured on A quieter change may matter as much as the headline rates. The fair market value ratio, which determines how much of a property's assessed value is actually taxed, would climb from 60 percent to 70 percent in 2027 and to 80 percent in 2028. Raising that ratio increases the tax even if the nominal rate stays put. The long-term residence deduction, a break for those who hold a home for years, would also be reined in, capped at 2 billion won in 2028 and 1 billion won from 2029, trimming a benefit that had grown generous over time. ## Capital gains, tightened and split The overhaul reaches capital gains as well. From 2029, single-home owners would receive a deduction of 8 percent for each year of residence, up to a maximum of 80 percent, preserving a strong reward for living in a home long term. Owners of multiple homes in areas without special regulation would get far less, 2 percent per year of residence, capped at 30 percent. Renters were not forgotten. The tax credit cap on monthly rent would rise from 10 million won to 12 million won a year, a modest gesture toward the households on the other side of the housing divide. ## The politics beneath the policy The changes phase in over years, with the basic deduction and fair market value ratio shifts starting on January 1, 2027, and the long-term residence restructuring taking effect in 2029. The staggered timeline gives owners warning and the government room to adjust. Taken together, the package turns into concrete rates the idea President Lee floated earlier, of taxing hoarded and high-end property harder while sparing ordinary owners. Whether it cools prices or merely rearranges who pays will be the test, in a market where homes have kept climbing despite every promise to slow them. --- Originally published by Korea First. Free to cite with attribution and a link to https://koreafirst.tv/article/korea-s-tax-overhaul-zeroes-in-on-costly-second-homes-while-sparing-owner-occupiers.