S.Korea to tighten property curbs as home prices surge

Median apartment prices in pockets of Gyeonggi-do, a province surrounding Seoul, are at 379.6 million won ($313,469) as of May, according to data from KB Bank.

South Korea's finance ministry said on Wednesday it will further tighten mortgage rules and apply property market curbs to additional areas outside the capital Seoul to tackle surging home prices in the metropolitan area. The government plans to impose tougher capital gains tax and other taxes on property ownership by corporations to rein in speculative investments, the ministry said, without elaborating further.

Details will be announced at 10 a.m. local time (0100 GMT) at a briefing, it said. Home prices in some areas around Seoul have been rising in recent weeks even as Asia's fourth-largest economy tips towards recession amid the coronavirus pandemic.

Median apartment prices in Seoul are at 920 million won ($759,873) as of May, having increased every month this year through the course of the coronavirus outbreak, and up about 52% since President Moon Jae-in took office in 2017. Median apartment prices in pockets of Gyeonggi-do, a province surrounding Seoul, are at 379.6 million won ($313,469) as of May, according to data from KB Bank. ($1 = 1,210.9000 won)