Koo Yooncheol: Supplementary Measures on Heavier Capital Gains Tax for Owners of Multiple Homes to Be Announced Next Week

The government will announce supplementary measures on rental housing next week to mitigate market shocks arising from the end of the temporary suspension of heavier capital gains tax on owners of multiple homes. The intent is to minimize public inconvenience by taking into account cases where immediate disposal is difficult, such as homes currently occupied by tenants.

Deputy Prime Minister for Economy and Minister of Economy and Finance Koo Yooncheol stated on social media platform X on the 5th, "We will end the temporary suspension of heavier capital gains tax for owners of multiple homes, but next week we will announce supplementary measures to minimize public inconvenience, including for homes that are currently being rented out."

Deputy Prime Minister Koo added, "We will firmly establish a housing market centered on residence rather than investment," and continued, "In recent days, the number of real estate listings in Seoul has been increasing. This is welcome news." His remarks are interpreted as viewing the increase in listings on the market as a sign of the policy taking effect.

Koo Yooncheol, Deputy Prime Minister for Economy and Minister of Economy and Finance, is delivering opening remarks at a meeting with business leaders at the Incheon Chamber of Commerce and Industry in Incheon Metropolitan City on the 5th. Yonhap News

The government plans to end the temporary suspension of heavier capital gains tax on owners of multiple homes on May 9. However, in order to reduce confusion in actual transaction settings, it is also pursuing the introduction of certain transitional provisions. Separate supplementary measures are expected to be prepared in light of the reality that homes occupied by tenants are difficult to sell immediately due to lease contracts, and considering the need to protect tenants.

The government has already reconfirmed its plan to end the system in official meetings. At a Cabinet meeting on the 3rd, Deputy Prime Minister Koo said, "To restore policy credibility and normalize the market, we plan to end the temporary suspension of heavier capital gains tax for owners of multiple homes."

In addition, temporary transitional measures will be applied only to transactions for which a sales contract is signed by May 9. For the three Gangnam districts and Yongsan District, which are existing regulated areas, if the balance payment is made or registration is completed within three months from the contract date, the transaction will be included in the scope of the temporary suspension. For areas newly designated as regulated in October last year, in order to provide a longer adjustment period for the market, the suspension benefit will be granted if the balance payment is made or registration is completed within six months.