Secondly, the Korean property taxation is progressive by values. Higher tax rates are applied to expensive houses, while lower tax rates, inexpensive ones. Progressiveness was streng- thened due to the enforcement of the “Gross Real Estate Tax Act” in 2006. For houses below 40 million WON3, their “Prop- erty Tax” rate is only 0.15%. However, for houses more expen- sive than 600 million WON, their “Property Tax” rate becomes 1%. If the price is over 2 billion WON, the owner has to pay 2% of assessed housing prices. Table 1 summarises the details of tax rates by housing price bands.