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Photo: National Tax Service |
[Alpha Biz= Kim Jisun] The National Tax Service (NTS) of South Korea announced on August 7 that it has launched a tax investigation into 49 foreign nationals suspected of tax evasion in connection with the purchase of high-priced apartments in Seoul’s affluent Gangnam districts — Gangnam, Seocho, and Songpa.
The investigation targets three specific categories:
16 individuals suspected of using illicit gift transfers to purchase high-value properties
20 individuals suspected of using undeclared income to buy apartments
13 individuals suspected of concealing rental income
This probe comes amid growing concerns that foreign buyers are taking advantage of regulatory blind spots in South Korea’s real estate market, potentially disrupting fair market practices.
A significant portion of the subjects are ethnic Koreans with foreign citizenship, with U.S. and Chinese nationals making up the majority. The NTS revealed that the suspected tax evasion amounts to between KRW 200 billion and 300 billion (approx. USD 150–230 million), and about 70% of the 230 properties involved are located in the Gangnam districts. Some of the units are reportedly worth over KRW 10 billion (approx. USD 7.7 million) at current market prices.
Key violations include:
Receiving disguised gifts from family members to finance property purchases
Exploiting identification loopholes, such as alternating between foreign registration numbers and passport numbers to evade tax scrutiny
Submitting falsified documents, including bank balance certificates and false funding plans, to make illicit funds appear legitimate
Using hidden income from domestic businesses, either personally operated or related, to acquire real estate
Concealing overseas funds via offshore shell companies, virtual assets, or illegal remittance methods (e.g., underground money transfers)
The NTS emphasized that these activities are not only illegal but also undermine the integrity of the domestic housing market. The agency plans to intensify monitoring and expand investigations if further violations are uncovered.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
