"Heavy Capital Gains Tax on Multi-Homeowners: Exemption If Balance Payment or Registration Is Completed Within 3 or 6 Months After End Date"

President Lee Jaemyung Chairs Cabinet Meeting on the 3rd
"Once a Policy Is Decided, It Must Be Carried Through as Is"

President Lee Jaemyung is reviewing documents at a Cabinet meeting held at the Blue House on the 3rd. Yonhap News

The government will end the temporary suspension of the heavy capital gains tax on multi-homeowners on May 9, but will grant an additional grace period that differs by region, extending it by either three months or six months.

President Lee Jaemyung received a report titled "Plan for Ending the Temporary Suspension of Heavy Capital Gains Taxation on Multi-Homeowners and Supplementary Measures" from Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance Koo Yooncheol at the Cabinet meeting held at the Blue House on this day.

According to the plan, existing regulated areas such as the three Gangnam districts and Yongsan will be given a three-month grace period. If a contract is signed by May 9 and the balance payment is made, or the registration is completed, within three months, the taxpayer will be exempt from the heavy taxation. In areas newly designated as regulated zones under the October 15 real estate measures, the balance payment or registration must be completed within six months.

Deputy Prime Minister Koo explained the rationale for the differentiation, saying, "We have taken into account past real estate transaction practices and the recent process of expanding regulated areas," and added, "We want to propose a plan that reflects market realities while minimizing inconvenience for the public."

President Lee reiterated his intention to end the measure on May 9, stating, "Even if a policy involves some degree of unfairness, once it is decided, it must be carried through as is."

President Lee pointed out, "Supplementary measures should be taken later in a different way, because if we simply delay or alter the policy itself, people will lose trust in it," and added, "If those who faithfully follow the policy end up suffering losses, how can we call this a fair society?"