[비즈한국] Mr. A, a legal professional in his mid-60s residing in Seocho-dong, Seoul, owns an apartment in Banpo as well. He is currently considering gifting a Sadang-dong apartment, which is currently leased out on a jeonse basis, to his daughter in her 30s. Although he initially intended to let her live there under a jeonse agreement and gift it later, he concluded that he should reduce inheritance and gift taxes in advance, given the alarming recent rise in Seoul housing prices.
Mr. A confessed, "As asset values rise, the tax burden inevitably grows exponentially, and my daughter's salary as an office worker is clearly limited. I felt that if the property is to be handed down anyway, it would be better to pass it on while she is as young as possible to save even a little bit on taxes."
B, a 29-year-old employee at Samsung Electronics005930, recently borrowed 150 million KRW from his parents under the guise of marriage funds to purchase an apartment in Yongin. While he has no immediate plans for marriage, he wrote up a promissory note for the 150 million KRW and pays interest, planning to convert it into a gift within the tax deduction limit once he eventually gets married. He discussed this plan with his parents late last year and received their 'approval'.
This rush was prompted by the alarming upward trend in housing prices. B persuaded his parents by arguing that 150 million KRW in 3 to 4 years would not have the same value as it does now. B's father remarked, "We intended to gift the money because up to 150 million KRW is tax-deductible upon marriage, but since our son wanted to buy a home by combining his own savings and a loan, we decided to lend him the money to encourage him to buy something with better investment value. It felt unusual, as the house he wanted to buy was sold just a day before he could send the earnest money, as if buying interest had spread to Yongin as well. He bought it in early January, and I feel relieved to have resolved my son's real estate problem, which I had considered as a task for his marriage."
The 30-Something Gift Boom: 1 in 4 Recipients is an MZ-Generation Member
The map of real estate gifts in South Korea is changing. According to the Supreme Court's Registry Information Square, 30-somethings accounted for the largest share at 25.5% among 9,765 recipients of collective buildings in Seoul last year. While the core demographic for gifts was typically those in their 40s, the baton has passed to those in their 30s as of last year.
The number of recipients in their 30s increased by more than 1,000, from 1,402 in 2024 to 2,489 in 2025, which is 100 more than the 2,389 (24.5%) in the 40s age group this year. They were followed by those in their 50s (1,734; 11.5%), 60s (1,124; 11.5%), and 20s (1,113; 11.4%).
This phenomenon is viewed as suggesting that the 'passing down of wealth' is happening much earlier than in the past. Wealthy individuals have determined that 'now is the right time to gift' at a point when real estate prices have hit rock bottom and are starting to rise again. In particular, with a shortage of new supply in the metropolitan area considered certain for the next 2 to 3 years or more, it has become a trend to hand over a 'decent apartment in Seoul' to children who have settled down with jobs and marriage, even if they are only in their 30s.
Anxieties Regarding Government 'Taxation Policy' Reflected
The government's strong will to tax is at the heart of why the market is reacting so sensitively. Recently, Kim Yong-beom, the presidential policy chief, reaffirmed in an interview with the Hankyoreh the government's stance to further solidify the tax system on real estate ownership and capital gains. Mr. Kim also proposed policies that differentiate tax burdens based on real estate asset brackets—such as 2 billion, 3 billion, or 4 billion KRW—and if implemented, it is predicted that owners of high-priced real estate might transfer assets to their children even faster to reduce their tax burden.
There are concerns that people might choose the detour of 'gifting' instead of putting their properties on the market. Mr. A noted, "I found that by completing the gift before taxes rise further or before the official assessed prices are further adjusted to market value, I save at least 1 million won in taxes. The stronger the tax-hike cards the government pulls out, the more people will try to gift assets to their children as quickly as possible."
The statistic that the proportion of recipients in their 30s has surpassed those in their 40s also draws criticism for highlighting the reality that independent housing in Seoul has become impossible without parental support. Mr. C, a man in his 40s who purchased an apartment in Hanam, Gyeonggi-do this year, expressed his concern, saying, "It seems that the future real estate market will be divided into 'those who can receive or buy real estate through gifts' and 'those who cannot.' It seems that more sophisticated policies are needed to stabilize real estate prices.".