South Korean authorities unrelenting in their all-out campaign to rein in runaway home prices in Gangnam district in posh southern Seoul neighborhood embarked on tax probe accusing as many as 532 for wrongdoings in transactions.

The National Tax Service (NTS) said Thursday that it has launched investigation into 532 individuals for alleged tax evasions and other unlawful practices in the course of property sales and purchases. The latest tax probe focuses on apartment trades in Gangnam and other parts of Seoul where property prices have surged.

The tax authority plans to look harder into tax evasion cases such as purchasing expensive re-developed apartments with laundered money and illegally passing down property assets as well as failing to report gains from sale of public rental houses.

Authorities have taken a series of measures to cool down the overheated housing market by tightening loan and transaction regulations. Tax probes have taken place three times since August last year.

Mortgage loans and housing prices have stayed strong despite the slew of government actions.

Mortgage loans added 37.1 trillion won ($34.7 billion) on year to hit 570.1 trillion won as of Dec. 31.

Separately on the same day, the Seoul Metropolitan Government said it will also set up a special investigation team to track irregularities in property investments. It is the first time for the city government to organize such a team.

But experts are doubtful of any effect from tough actions as home prices in Gangnam stems mostly from supplies shortage against ever-persistent demand for homes in the neighborhood famous for good schools and living environment.

By Chun Jung-hong and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]