The government of South Korea has announced a package of measures designed to curtail a strong uptrend in property prices which includes severe taxes on property speculators.
"The government is committed to stabilizing real estate prices to minimize the negative impact of higher property market prices on the overall economy," Finance Minister Kim Jin-Pyo announced recently, revealing that "About 100,000 people, regarded as holding excessive real estate, will face tougher progressive taxes."
Other measures being considered by the Finance Minister include imposing cuts in mortgage loans to retail brokers.
The government is attempting to channel funds away from the real estate sector by making other investments, such as equity linked vehicles, more desirable from a taxation point of view.
However, the situation has not been helped by the Korean central bank's decision to clip a quarter percentage point off the base lending rate amid fears of an impending economic slump. The base rate now stands at 4%.
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