A plan to reform the tax system targeting 'ultra-high-priced housing' for the elderly...Will the generation change of homeowners in Gangnam accelerate?

The government has proposed a reform to the tax system for high-value homes, increasing burden for those who own multiple properties and levying a new housing tax (property tax) on those who keep them long-term. For elderly homeowners in Seoul's affluent Gangnam district, this could force them to sell their homes sooner than they might otherwise.

The reform proposes a property tax increase, which would apply to properties valued at 25 billion won (≈ $20.6 million) to 94 billion won, raising the tax rate by up to 4 times the current rate. However, older homeowners would be able to receive a reduction in inheritance tax if they move from a high-value property in a major city to a lower-value property in a different region.

The government hopes this will encourage elderly homeowners to move their wealth out of the city and into lower-cost housing elsewhere.