Seoul 'cautiously' considers higher property tax

South Korea's chief economic policymaker said Friday the government is "cautiously" considering raising property taxes in yet another attempt to tame rising home prices.

Finance Minister Kim Dong-yeon said there are speculative demands in some areas such as the wealthy Gangnam Ward and adjacent districts.

"We have been reviewing many options in regard to a hike in property ownership tax," Kim said in a session with senior journalists at the press center in central Seoul.

There have been mounting worries that housing prices in Seoul have recently been rising excessively despite a series of measures to rein in surging prices, including tightened home mortgages for multiple home owners.

Finance Minister Kim Dong-yeon speaks at a forum with senior journalists at the press center in central Seoul on Jan. 26, 2018. (Yonhap)

As for the economic recovery, Kim said Asia's fourth-largest economy is maintaining its recovery pace, backed by improving domestic demand and exports.

Last week, the Bank of Korea forecast that South Korea's gross domestic product will grow 3 percent in 2018, faster than its previous estimate of 2.9 percent.

The latest GDP forecast for South Korea is in line with the government's economic outlook. The nation's economy expanded 3.1 percent in 2017 on-year and 2.8 percent in 2016, the BOK said.

Last year was the first time since 2014 that the economy grew more than 3 percent. (Yonhap)