Tax authorities in South Korea have launched an investigation into dozens of foreigners who own multiple homes and are suspected of evading taxes on their rental income.

According to the National Tax Service(NTS) Monday, the probe involves 42 foreigners, including an American in his 40s, owning 42 homes worth six-point-seven billion won in total. They are suspected of underreporting their rental income.

Another case involves a Chinese national in his 30s with a student visa, who failed to report rental income from seven out of eight homes he had purchased.

Between 2017 and May this year, one-thousand-36 foreigners purchased more than two homes in South Korea.

Of the 23-thousand-167 homes purchased by foreigners during the same period, 32-point-seven percent were never occupied by the owners, suggesting most of the purchases reflect "speculative demand."