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South Korea's brain drain -- Why top talent is leavingm.koreaherald.com/article/10526125
195 sats \ 4 comments \ @south_korea_ln 7 Jul science
zaps forwarded to @Bell_curve (20%)
The root causes of this talent outflow are systemic. South Korean universities suffer from frozen tuition fees, stagnant faculty salaries and a rigid seniority-based pay system.
While public and private universities struggle to maintain competitive compensation, top global universities are actively headhunting Korean talent. A professor making around 100 million won ($73,000) in Seoul may receive an offer of over $330,000 abroad.
"With a salary gap of over four times, considering the benefits of doing research with abundant resources and receiving support for housing, there is really no reason to turn down a really good offer," an assistant professor researching in AI who wished to be anonymous told The Korea Herald.

H/t @Bell_curve

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11 sats \ 0 replies \ @didiplaywell 7 Jul

No disciplining force greater than that of the free market. See Menger unfold.

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0 sats \ 2 replies \ @Bell_curve fwd 7 Jul

Thanks for the hat tip

S Korea has to lower or repeal the estate/inheritance tax... 50 percent is too high

The real estate market has too many distortions such as a cap on investors buying real estate or investors are taxed at a higher rate... it's an indirect form of price control

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0 sats \ 1 reply \ @Bell_curve fwd 7 Jul

These distortions on investments or capital formation also affect the job market: salaries are capped, lower than 'real market value'

edit: Distortions in the job and investment markets are one reason, perhaps the main reason, for extremely low fertility rate

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0 sats \ 0 replies \ @Bell_curve fwd 7 Jul

from copilot...

You're not wrong—South Korea’s property tax system can feel pretty heavy-handed, especially for investors holding multiple residential properties or aiming for short-term gains. Here's a breakdown of why it's often seen as punitive:

🏠 Key Property-Related Taxes for Investors in South Korea🏠 Key Property-Related Taxes for Investors in South Korea

  • Acquisition Tax: Ranges from 0.6% to 4.6% of the purchase price. Higher rates apply if you're buying multiple homes or luxury properties.
  • Annual Property Tax: Levied by local governments, typically 0.5% to 4% of the assessed value. Again, the rate increases with the number of properties owned.
  • Comprehensive Real Estate Holding Tax: This is where it gets steep. For owners of high-value or multiple residential properties, this additional annual tax can push the total burden significantly higher.
  • Capital Gains Tax: If you sell a property, expect a progressive tax based on how long you held it. Short-term sales (under 2 years) can be taxed at up to 70%, while long-term holdings get deductions up to 30% after 10 years.
  • Rental Income Tax: Ranges from 6% to 42%, depending on income level. There are two methods for calculating taxable rental income, but both can be complex and offer limited deductions.

🇰🇷 Why the System Feels Tough on Investors🇰🇷 Why the System Feels Tough on Investors

  • The government has used tax policy as a tool to cool speculative demand and stabilize housing prices, especially in Seoul.
  • Multiple-home owners are targeted with higher rates to discourage hoarding and flipping.
  • Foreign investors face the same tax rates but must also navigate additional reporting requirements under the Foreign Exchange Transactions Act.

If you're considering investing there, it’s wise to consult a local tax advisor or real estate attorney—especially since the rules shift frequently with political winds. Want to compare this with how California handles property taxes for investors?

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