Housing Finance Policy

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    A. Legal and Regulatory Framework

    A.1 Legal and Regulatory Framework
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Basis of the legal system: Civil, Common, Islamic, Other? (Describe)Mixed system including civil lawMixed system including civil law Mixed system including civil law
    CIA World Factbook
    		A.1.1
    Registration/Transfer of titles:A.1.3
    Typical number of days needed for the transfer of title5.505.505.50
    WDI
    		A.1.3.4
    Are there legal constraints on the types of mortgage products that are permitted?Yes  
    Financial Services Commission
    		A.1.5
    Are there legal constraints on mortgage features?Yes  
    Financial Supervisory Service Annual Report
    		A.1.6
    Loan-to-Value capYes  
    Financial Supervisory Service Annual Report
    		A.1.6.2
    OtherYes  A.1.6.4
    Is there specialized legislation covering:A.1.9
    B. Housing Finance Subsidies
    B.1 Subsidies to Housing Finance Institutions
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Is the lending side of the housing finance system subsidized?Yes  
    Research
    		B.1.2
    Guarantees for mortgage loansYes  
    Korea Housing Finance Corporation
    		B.1.2.2
    B.2 Subsidies to Households
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    Are there subsidies to households on housing finance?YesYes 
    Research
    		B.2.1
    Interest rate subsidies by special government fundsYesYes B.2.1.1
    Mortgage interest deductibility from income taxYes  
    National Tax Service
    		B.2.1.5
    Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
    C. Taxation
    VariableEnd of 2018End of 2017End of 2016SourcesVar ID
    What taxes apply to Residential Real Estate?C.1
    Tax on property (home-owners) YesYesYes
    Deloitte
    		C.1.1
    Property transaction taxes (purchase/selling)YesYesYes
    Deloitte
    		C.1.2
    Mortgage transaction taxesYes  
    Deloitet
    		C.1.3
    Tax on capital gains on property Yes Yes
    Deloitte
    		C.1.5
    Other  YesC.1.6
    back to top | Country Data:
    Notes: At Q4 2009; 3rd quintile (60th percentile) of monthly income per household
    Notes: At Q4 2010; 3rd quintile (60th percentile) of monthly income per household
    Notes: At Q4 2011; 3rd quintile (60th percentile) of monthly income per household
    Notes: At Q4 2012; 3rd quintile (60th percentile) of monthly income per household
    Notes: At Q4 2013; 3rd quintile (60th percentile) of monthly income per household
    Notes: At Q4 2014; 3rd quintile (60th percentile) of monthly income per household
    Notes: At Q4 2015; 3rd quintile (60th percentile) of monthly income per household
    Notes: At Q4 2016; 3rd quintile (60th percentile) of monthly income per household
    Notes: KB Kookmin Bank offers a "stepping stone" mortgage with lower interest rates for low-income workers. It is funded through the Housing and Urban Fund
    Notes: The government recently restrained mortgage borrowing to once per household in "overheated" districts in Seoul. Owners of two homes must pay an additional 10% in transfer income tax and those of three homes must pay an additional 20%.
    Notes: 0.2-0.9% is Real Estate Agent's fees
    Notes: 0.25-1%
    Notes: 2010 = 100
    Notes: Annual property taxes are levied between 0.15-0.5%, depending on property location, type, and other other factors. There is also a comprehensive real estate holding tax that ranges from 0.5-2% for homes that exceed KRW 600 million (~ US$ 540,541)
    Notes: As of Nov 1st
    Notes: At Q4 2018; 3rd quintile (60th percentile) of monthly income per household
    Notes: Average dwelling unit size for apartments. Over 60% of dwellings are apartments.
    Notes: Capital gains tax is levied on the seller. The rate depends on the amount of capital gains earned. The individual is then given a deduction that ranges according to the length of time that the home was held
    Notes: Figure listed is only based on all credits to households.
    Notes: Figure listed is only based on all credits to households.
    Notes: Figure listed is only based on all credits to households.
    Notes: Figure listed is only based on all credits to households.
    Notes: Figure listed is only based on all credits to households.
    Notes: Figure listed is only based on all credits to households.
    Notes: Figure listed is only based on all credits to households.
    Notes: Figure listed is only based on all credits to households.
    Notes: Figure listed is only based on all credits to households.
    Notes: Figure listed is only based on all credits to households.
    Notes: Figure listed is only based on all credits to households.
    Notes: Figure listed is only based on all credits to households.
    Notes: Financial Services Commission (financial regulator)
    Notes: For banks only
    Notes: For banks only
    Notes: For banks only
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: IBK is 57.7% owned by the government
    Notes: KB Kookmin Bank offers a "stepping stone" mortgage with lower interest rates for low-income workers. It is funded through the Housing and Urban Fund
    Notes: Median housing price in Seoul
    Notes: mortgage interest deductibility is only available to Korean nationals
    Notes: Mortgages are allowed only for residential purpose for high-priced houses exceeding KRW900MM
    Notes: National Housing Bonds (NHBs) are bonds issued to raise funds for the construction of residential houses pursuant to the National Housing Act. Unlike other government bonds, NHBs are issued on the basis of mandatory placement.
    Notes: National Rate
    Notes: National Rate
    Notes: National Rate
    Notes: National Rate
    Notes: Range from 0.24% to 0.6% depending on property type. Additionally, there is a comprehensive real estate tax for owners of land with value over KRW600MM
    Notes: Range from 0.24% to 0.6% depending on property type. Additionally, there is a comprehensive real estate tax for owners of land with value over KRW600MM
    Notes: Range from 0.24% to 0.6% depending on property type. Additionally, there is a comprehensive real estate tax for owners of land with value over KRW600MM
    Notes: Real estate acquisitions are taxed at a rate of 4.6% based on the actual acquisition price
    Notes: Real estate acquisitions are taxed at a rate of 4.6% based on the actual acquisition price
    Notes: Real estate acquisitions are taxed at a rate of 4.6% based on the actual acquisition price
    Notes: Rental income is taxed at progressive rates. The taxable amount is calculated by taking total rental income and subtracting deductable allowable expenses
    Notes: Share of individuals who resided in same region as the location of ownership houses
    Notes: The individual acquiring the property pays an acquisition tax of 4.6%
    Notes: There is a stamp duty but it is insignificant