'Eomppa Chance' Tax Investigation on 98 People Including Minors Acquiring High-Value Houses

Foreign Minors Among High-Value Property Buyers Reach 30
Thorough Verification from Asset Acquisition to Debt Repayment

Kim Tae-ho, Director of the Asset Taxation Bureau at the National Tax Service, is briefing at the National Tax Service press room on the 22nd about the commencement of tax investigations into 98 suspects involved in irregular tax evasion, including private equity funds and corporations acquiring multiple homes, and minors acquiring high-priced homes.

[Asia Economy Reporter Kwangho Lee] The government has launched a tax investigation into suspects of tax evasion related to real estate transactions. Key targets include private equity funds and corporations acquiring multiple homes, as well as young individuals acquiring high-priced homes. A large number of foreigners are also included in this investigation.

On the 22nd, the National Tax Service announced that it has started tax investigations on 98 suspects involved in irregular tax evasion through real estate transactions.

The investigation targets include 10 individuals related to private equity funds acquiring multiple homes, 12 individuals related to corporations acquiring multiple homes, and 76 young individuals under 30 acquiring high-priced homes (including 30 foreigners).

Specifically, the targets are ▲ suspects who evaded corporate tax, income tax, and gift tax during the acquisition and management of multiple homes through private equity funds ▲ those suspected of illegal gifting by establishing single-person or family corporations to acquire multiple homes to evade multi-homeowner regulations ▲ young individuals under 30 who have acquired high-priced homes or hold multiple homes with unclear sources of funds.

Kim Tae-ho, Director of the Asset Taxation Bureau at the National Tax Service, stated, "As a result of closely monitoring the real estate market recently, we have identified many suspects of irregular tax evasion who took advantage of the overheated real estate market despite the economic crisis caused by the novel coronavirus (COVID-19). We will thoroughly verify irregular tax evasion in real estate transactions from asset acquisition to debt repayment."

Kim added, "The National Tax Service will continue to closely monitor regional real estate transaction trends through the 'Real Estate Transaction Evasion Response Task Force (TF)' established at local tax offices, and plans to strengthen cooperation with related agencies such as the Ministry of Land, Infrastructure and Transport to collect and verify evasion information more precisely."