The share of nationwide residential comprehensive real estate tax (CRET) paid by taxpayers in Seoul’s Gangnam, Seocho and Songpa districts reached 32.9% last year, marking the first time in five years that this figure has climbed back into the 30% range. As high-end housing prices and concentrated ownership in these “Gangnam 3 Districts” surged, the total CRET collected from the three areas rose 35.2% to 4,300 billion won out of a national total of 13,089 billion won.
After peaking at 39.5% in 2020, the Gangnam 3 Districts’ share of CRET had dipped to 25.6% in 2022 but rebounded to 27.6% in 2023 and 29.2% in 2024 before last year’s further increase. Analysts attribute the trend to both rising luxury home prices and an uptick in owner-occupiers within these districts, given that CRET is assessed on a per-taxpayer basis using their registered residence.
Breaking down the latest figures by district, Gangnam-gu accounted for the largest share last year at 2,336 billion won, followed by Seocho-gu (1,429 billion won), Yongsan-gu (750 billion won) and Songpa-gu (534 billion won). Overall, Seoul’s residential CRET climbed 30.1% to 7,411 billion won.
In response to widening asset polarization and the resurgence of high-end property concentration, the government is preparing comprehensive tax reforms targeting non-resident owners and ultra-luxury apartments. Officials plan to maintain benefits for genuine owner-occupiers while tightening holdings-based levies on second homes and residences valued well above the current 12-billion-won exemption threshold.
The administration is also considering revisions to capital gains tax incentives, particularly the long-term holding deduction (currently up to 40%) which critics say encourages speculative “one-good-property” strategies. Proposals include recasting the deduction to favor actual residency—potentially renaming it the “Long-Term Residence Income Deduction”—and scaling back or eliminating the holding period credit for non-resident owners.
According to discussions within the Ministry of Economy and Finance, these measures form part of a broader housing-market stabilization study, with CRET and capital gains tax at its core. The government will host three days of public forums from July 14 to 16—covering supply, finance and tax topics—before President Lee convenes a final summit on July 23 to finalize the real estate tax reform package.