"Now you allow gap investment?" Joo Jin-woo criticizes four‐month grace period for heavier capital gains tax on multiple‐home owners

[Financial News] Joo Jin-woo of the People Power Party strongly criticized the government’s plan to give an additional four to six months for closing and registration in connection with the grace period for heavier capital gains tax on multiple-home owners, which is scheduled to end on May 9. He asked, "Now you are allowing gap investment?"
On the 10th, Joo wrote on his Facebook page, "Koo Yun-cheol, Deputy Prime Minister for Economic Affairs, said today that 'if there is a tenant, the owner-occupation requirement will be deferred until the end of the lease period.'" He went on, "If you buy a home with a jeonse tenant, that is gap speculation," adding, "You tied the hands and feet of ordinary citizens, and now you are effectively confessing that your policy has failed."
He argued, "I have consistently warned that, just like the Lee Jae-myung administration, if you block loans for genuine homebuyers and make owner-occupation mandatory, transactions will dry up and housing prices will eventually soar." He added, "That warning has become reality. The Lee Jae-myung administration even blocked young people and newlyweds, who lack funds, from buying their own homes using loans or by taking over a jeonse tenant."
He continued, "In the meantime, housing prices have surged so much that young people can no longer even think about buying a home," and asked, "If you were going to allow gap investment now, why did you designate land transaction permit zones and lock them down in the first place?"
Meanwhile, Koo Yun-cheol, Deputy Prime Minister for Economic Affairs and Minister of Finance and Economy, reported to President of South Korea Lee Jae-myung at a Cabinet meeting held the same day at Cheong Wa Dae, the presidential office, that "for contracts signed by May 9, we are considering a plan to set the period for closing and registration at four months for properties in the Gangnam 3 Districts (Gangnam-gu, Seocho-gu, and Songpa-gu) and Yongsan District."
He also said that for homes currently occupied by tenants, "In light of market conditions, we will defer the owner-occupation requirement for the duration of the tenant’s lease, but once the lease ends, we will require the owner to live in the property, so as to ease public concerns."
gaa1003@fnnews.com Reporter Ahn Gaeul Reporter