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South Korea will raise property ownership tax rates on people who own three or more homes from a range of 0.6 to 3.2 percent to a scope of 1.2 to 6 percent to curb housing prices.
Companies with multiple homes will be slapped with a 6-percent ownership tax.
The punitive tax rate will affect 0.4 percent of South Koreans, according to the ministry.
The South Korean government had been rolling out measures to prevent a further rise in housing prices, especially in greater Seoul and some unregulated areas.
Previous steps, such as tax hikes and loan regulations, unsuccessfully kept home prices from soaring.
While the government pledged to rein in speculative investments for homes, it will continue to ease tax burdens for first-time home buyers.
Analysts noted that record-low interest rates and excess liquidity pumped into the markets to help revive the economy have contributed to soaring home prices.
