SEOUL, Sept. 11 (Korea Bizwire) – A recent study has revealed a 30 percent surge in underage individuals earning income as landlords over the past five years. In 2021, a total of 3,136 underage landlords collectively generated 54.8 billion won in rental income, averaging 17.48 million won per person annually.
This escalating trend of underage real estate ownership showed consistent growth from 2017 to 2021, as per a study conducted by Yang Kyung-sook, a legislator from the opposition Democratic Party of Korea. The data was drawn from the National Tax Service, indicating a substantial increase of around 30 percent (or 721 individuals) over this five-year period.
During this period, minors amassed a cumulative rental income of 27.16 billion won. Commercial leasing predominantly occupied the landscape, with a significant majority of underage landlords falling into this category.
Out of the 3,136 underage landlords in 2021, a noteworthy 2,820 were involved in commercial property leasing, boasting an average annual rental income of 17.7 million won. Additionally, 144 minors engaged in residential property rental, accruing an average income of 15.28 million won.
Commenting on this trend, Yang remarked, “The rising number of underage individuals generating unearned income from real estate is a concerning development.”
Yang emphasized the importance of a thorough investigation by the National Tax Service to ensure that there is no tax evasion, unfair gifting, or inheritance-related issues, especially since many of these properties are likely to be owned by their parents.