Kim Yongbeom: "Considering Extending End Date for Suspension of Heavy Capital Gains Tax on Multiple Homeowners by One or Two Months After May 9"

Kim Yongbeom, Chief of Policy Office, Holds Briefing on January 28
Government Considers Different End Dates by Region

On the morning of the 17th, Kim Yongbeom, Chief of Policy Office at the Presidential Office, delivered opening remarks at the first meeting of the "Gwangju Military Airport Relocation Six-Party Consultative Group" held at Gwangju Urban Corporation in Seo-gu, Gwangju. Photo by Yonhap News

Kim Yongbeom, Chief of Policy Office at the Presidential Office, stated on January 28 that the government is considering options to end the "temporary suspension of heavy capital gains tax for owners of multiple homes" not on May 9 as originally planned, but a month or two later.

At a press briefing held at Chunchugwan that day, Kim explained, "May 9, the original end date, was decided somewhat hastily," and added that the government is now reviewing alternatives.

He further stated, "Ending it a month or two later would not technically undermine the principle," and explained, "The Tax Policy Office of the Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport are reviewing until when the temporary suspension should be allowed as they revise the enforcement ordinance."

On January 23, the President posted on his social media account that he was "not considering an extension at all" for the temporary suspension of heavy capital gains tax for owners of multiple homes. However, after public opinion emerged that it would be difficult to sell properties within the given period, he clarified that the suspension would be recognized for contracts signed by May 9.

Kim Yongbeom's latest remarks are interpreted as suggesting a slight extension of the end date itself, beyond simply recognizing contracts signed by the deadline. He added, "It takes a long time for real estate transactions to be completed," and "We are hearing about various cases of confusion. However, I don't think the extension will be for several months."

He also mentioned the possibility of applying different end dates depending on the region. Kim explained, "The October 15 real estate measures significantly expanded the scope of regulated areas," and "Unlike areas such as the three districts of Gangnam, which were already regulated, those who were newly included in regulated areas may not have been fully aware that heavy capital gains tax would apply to owners of multiple homes."

He emphasized, "Related ministries are discussing measures such as granting a longer suspension period for owners of multiple homes in newly designated regulated areas."

Kim Yongbeom stated that these measures will be prepared and announced for legislative notice within one to two weeks.