[News Today] Foreigners eye Seoul housing, some skirt taxes

[LEAD]
Despite tough loan regulations, apartment prices in the capital area are climbing again.

Foreign buyers are also purchasing high-end properties, with funds brought in from abroad.

Tax authorities detected signs of large-scale tax evasion involving nearly 50 foreign nationals.

[REPORT]
Hannam-dong in Seoul is home to many foreign embassies and diplomats stationed in Korea.

About 13% of its residents are foreign nationals.

Apartment building manager / (VOICE MODIFIED)
Many residents in low-rise, multiple-unit buildings are foreigners, who like open spaces where they can enjoy barbecue.

Many property purchases in this affluent area are made by foreigners.

Realtor / (VOICE MODIFIED)
Foreigners prefer upscale apartments with nice community facilities like those in Gangnam.

The number of apartment purchases by foreign nationals has been on the rise every year. About 60% of them are in the capital area.

Foreigners mostly buy upscale apartments, with four out of ten purchases in Seoul being made in the three Gangnam areas as well as Mapo, Yongsan and Seongdong.

Unlike Korean nationals, who face tight restrictions in receiving mortgages, foreigners can easily receive funding from banks in their home countries or from their relatives.

Min Joo-won / National Tax Service
Property purchases by foreigners can have a negative impact on real estate policies, as they can receive funding from their home countries and are not subject to loan regulations in Korea.

Currently, 49 foreign nationals have allegedly evaded taxes worth over 200 billion won or about 144 million dollars.

They either received money from their parents or spouses in their home countries without reporting gift taxes, or leased their properties to other foreigners without reporting their rental incomes.

They capitalize on the fact that foreign nationals usually do not report moving in.

Realtor / (VOICE MODIFIED)
Foreigners who have passports and domestic residence status do not report moving in.

The National Tax Service plans to recommend that the Ministry of Economy and Finance amend the tax laws to reduce tax exemptions on foreigners' property-related incomes.