BTS, the world's most popular boy band. "Dynamite" and "Butter" topped the Billboard single chart, clearly becoming world-class superstars. As such, many people are interested in the real estate status of the members. Recently, news of BTS member Jungkook's apartment donation was reported. What is it about?
I gave my brother an apartment.
BTS Jung Kook.
On the 16th, a media outlet reported that Jungkook, who works for the group BTS, donated an apartment worth 4 billion won to his brother. The apartment Jungkook donated to his brother was an apartment on the 17th floor of Yongsan City Park in Seoul. In 2019, Jungkook purchased the apartment for 2.98 billion won.
Yongsan City Apartment in Seoul is an apartment in the station area close to Ichon Station, which has Subway Line 4 and Gyeongui Jungang Line. The National Museum of Korea and Yongsan Park will be built nearby, so the residential environment is also good. The apartment, which consists of a living room, four rooms, and two toilets, currently has a market price of about 4 billion won.
BTS Jung Kook.
The reason I donated my apartment.
In response, experts analyzed that the gift was chosen to save money. An appraiser said, "It seems that we chose to give gifts for reasonable tax savings," adding, "In the case of gift taxes, there are many deductions and additional tax cuts are possible if we receive appraisal, but in the case of transfer, taxes based on profits may be imposed."
Apartment donations in Seoul hit an all-time high in 2021. When the government began to impose taxes on multiple homeowners, such as ownership tax and transfer tax, it chose to give apartments to children or brothers. In particular, apartment donations are occurring a lot in Gangnam and Seocho-gu. Recently, there are cases where not only children but also couples receive deductions and give gifts.
Apartment gift.
It's going to increase steadily.
The problem is that the donated apartments are unlikely to appear in the real estate market for at least five years. This is because if the donated sale is sold within five years, the transfer tax is calculated at the price acquired by the donor. As a result, the "transaction cliff" phenomenon in Seoul and other metropolitan areas is getting worse.
In fact, apartment transactions in the metropolitan area and metropolitan cities are greatly decreasing, but on the contrary, gift transactions are steadily increasing. According to the Korea Real Estate Agency, gift transactions accounted for 16.4% of the 7,848 apartment transactions in Seoul in July with 1,286. Experts predict that if regulations on multiple homeowners are not eased in the future, gift transactions will increase steadily and the transaction cliff will not be easily resolved.
Regarding the donation of apartments, netizens said, "Isn't it easy to see apartments for the time being?" "What do you mean, a donation of apartments worth 4 billion won?"There are various reactions such as "If I paid the gift tax properly, there would be no problem," and "I want to live in an apartment, but I can't do anything because I don't have anything for sale."
