"Will It Be Extended Again? No, This Time It's for Real"...Highlights from Deputy Prime Minister Koo's Remarks

Suspension of Heavy Capital Gains Tax on Multi-Homeowners, Housing Supply Plans
Determined to Remove Insolvent Companies Amid 'Stock Market Bubble' Concerns

This is a summary of the weekly remarks made by Koo Yoonchul, Deputy Prime Minister for Economy and Minister of Economy and Finance, who serves as the 'economic control tower' of the Lee Jaemyung administration. First, Deputy Prime Minister Koo reiterated that the temporary suspension of the heavy capital gains tax on multi-homeowners, which President Lee referred to as 'unearned income profiteering,' will soon come to an end. In response to questions about whether the announced plan to supply 60,000 housing units in urban areas is sufficient, he expressed dissatisfaction and said that further efforts would be made to identify additional sites. In addition, regarding U.S. President Donald Trump's surprise announcement of tariff increases on social media, Koo said he was "shocked" and expressed his willingness to demonstrate South Korea's commitment to fulfilling agreements with the United States.

Koo Yoonchul, Deputy Prime Minister for Economy and Minister of Economy and Finance, is speaking at the Expanded Macroeconomic and Financial Meeting held at the Government Seoul Office in Jongno-gu, Seoul on January 29, 2026. Photo by Jo Yongjun

"The temporary suspension of the heavy capital gains tax on multi-homeowners has become a routine extension, leading the market to react for years with the expectation that 'it will be extended again this time.' As a result, the policy's effectiveness has diminished. This time, it will end."

Deputy Prime Minister Koo made these remarks during an appearance on an MBC radio program on January 29. As President Lee has repeatedly emphasized recently, there will be no further postponement of the heavy capital gains tax on multi-homeowners. The sunset date for this measure is May 9. President Lee's policy aims to bring multi-homeowners' properties onto the market to increase supply and stabilize the housing market.

However, there are concerns that the deadline is only three months away, making the situation urgent. Since last year, all areas of Seoul have been designated as land transaction permission zones, and it takes at least 20 days just to obtain approval from the local district office after signing a sales contract. Deputy Prime Minister Koo added, "We will listen to a wide range of public opinions to minimize any inconvenience experienced by the public during the implementation process."

"I would never say, 'This is enough, I am satisfied.'"

When asked, "Is the housing supply plan sufficient?" Deputy Prime Minister Koo responded, "No," and explained his position. On January 29, the government announced plans to build 60,000 housing units in the Seoul metropolitan area by utilizing idle sites and old government buildings in urban areas such as Yongsan International Business District and Taereung Golf Course (Taereung Country Club). The goal is to build homes in prime locations to ensure housing stability for actual demand groups such as young people and newlyweds. Deputy Prime Minister Koo said, "Sixty thousand units are about twice the size of the Pangyo New Town, so it's not a small number," but added, "Since the public still feels the supply is insufficient, we will continue to identify attractive housing sites going forward."

"I was also shocked this morning."

On January 26, President Donald Trump made a surprise announcement on his social media, stating his intention to raise tariffs on South Korea. This was a retaliatory remark in response to delays in the legislative process for the 'Special Act on Investment in the United States' in the National Assembly. In response, Deputy Prime Minister Koo told the National Assembly's Planning and Finance Committee, "It is unclear whether President Trump's remarks are solely due to the lack of legislative action or if other issues, such as Coupang, are also involved. The Minister of Trade, Industry and Energy will find out when he meets with the U.S. Secretary of Commerce." He also urged the National Assembly to expedite the passage of the Special Act on Investment in the United States. Deputy Prime Minister Koo added, "We will continue to communicate and cooperate closely with the National Assembly, and we will also actively explain our commitment to fulfilling tariff agreements to the U.S. side."

However, there are criticisms that Minister of Trade, Industry and Energy Kim Jeonggwan returned from the United States "empty-handed" after two days of meetings with U.S. Secretary of Commerce Howard Lutnick, as no conclusion was reached.

"We will decisively remove insolvent companies."

Regarding recent concerns about a 'bubble' in the KOSDAQ market, Deputy Prime Minister Koo said, "While I do not entirely agree with that assessment, a system that decisively removes insolvent companies is necessary to advance the capital market." As one of the measures, he cited the tightening of delisting requirements. Deputy Prime Minister Koo explained, "For KOSDAQ, the delisting threshold will be raised from 4 billion won to 15 billion won in market capitalization, and for KOSPI, it will be increased step by step from 5 billion won to 20 billion won." However, he added, "For companies with technological capabilities, we will expand the special technology listing system, thus applying both incentives and penalties."