'Landlords from birth': 179 children under 5 earned W10m or more in rental income

More than 200 preschool children — including newborns still in diapers — earned at least 10 million won in real estate rental income last year, according to data obtained from the National Tax Service. The average rental income among minors exceeded 17 million won per person.

Democratic Party of Korea lawmaker Moon Jin-seog, a member of the National Assembly's Finance and Economy Planning Committee, released the data Monday. The National Tax Service figures show that 179 children between the ages of 0 and 5 reported real estate rental income in 2024.

Of those, nine were infants aged 0 to 1, followed by 15 two-year-olds, 33 three-year-olds, 51 four-year-olds and 71 five-year-olds.

Average rental income per child was 14.7 million won for those aged 0 to 1, 12.3 million won for two-year-olds, 18.4 million won for three-year-olds, 14.7 million won for four-year-olds and 15 million won for five-year-olds.

The number of children aged 0 to 5 reporting rental income has declined in recent years, from 252 in 2020 to 238 in 2021, 250 in 2022 and 217 in 2023, before dropping below 200 in 2024.

Measured against Ministry of Interior and Safety population statistics, the 179 children represent 0.01 percent of the roughly 1.582 million children aged 0 to 5 in South Korea — a tiny fraction of children not yet old enough for school already earning passive income from property inherited or gifted by parents or grandparents.

Expanding the scope to all minors aged 18 and under, a total of 3,233 reported real estate rental income in 2024, collectively declaring 55.58 billion won. That figure represents 0.04 percent of the roughly 7.325 million people in that age group, with average rental income per person coming to 17.2 million won.

The number of minors reporting rental income generally rose with age. Those aged 7 to 11 numbered in the low hundreds, while the 12-to-14 age group reached the 200s and those aged 15 to 18 climbed into the 300s.

Over the past five years, more than 3,000 minors reported real estate rental income each year from 2020 through 2024. Average per-person income over that period ranged from 17.2 million won to 18.5 million won.

Most of these children are believed to have acquired their rental income through inheritance or gifts — a practice that is not illegal but is widely seen as socially problematic. Critics say it deepens the sense of deprivation among peers and working youth and can erode the motivation to work.

"Real estate rental income among minors is rising due to early inheritance and gift transfers," Moon said, urging the National Tax Service to examine the sources of funds behind real estate held in minors' names and "conduct a thorough review to determine whether any irregular inheritance or gift arrangements are involved."