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S. Korean gov't hikes appraisal prices of land to cool market Updated: 2019-02-12 18:05:07 KST

Land in South Korea has gotten pricier this year, and it turns out that the pace of the increase was faster in areas already considered expensive.

According to this year's appraisal by the land ministry, the average price has increased by 9.42 percent in 2019 compared to last year.
This is faster than the increase in 2018 of 6.0-2 percent and marks the sharpest rise since 2008.

The government raised the land prices the most in regions considered "expensive."
These are areas worth more than 17 thousand U.S. dollars per square meter.
There the average increase was more than 20 percent.
Upping the appraisals is part of the government's efforts to use the tax system to curb soaring real estate prices and to regulate speculative investments in affluent districts.

Breaking it down by major cities, land prices in Seoul rose the most, by almost 14 percent, and in southern port city of Busan by more than 10 percent.

The appraisal system directly affects peoples' daily lives because it determines the amount of property tax they have to pay.
Others say this could negatively affect many tenants such as the self-employed because the rise in land prices might lead to an increase in rent.

Some experts say the revisions might hurt the overall economy by prompting many tenants to leave central parts of the cities because of high rent.
Ko Roon-hee, Arirang News.
Reporter : krh@arirang.com
KOGL : Korea Open Government License
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