Lee considers allowing capital gains tax relief for multi-homeowners to cover permit applications filed by May 9

According to The Financial News, President of the Republic of Korea Lee Jae Myung on the 6th ordered a review of supplementary measures related to the May 9 deadline for special capital gains tax relief for multi-homeowners. He said, "I am wondering if we could allow cases where permit applications have been filed by May 9." He also raised the issue of single-homeowners seeking to sell homes with tenants, and instructed officials to consider revising the enforcement decree.
At the 14th meeting of the State Council of South Korea and the 4th Emergency Economic Review Meeting held that day at Cheong Wa Dae, Lee Jae Myung said, "The deadline for the special capital gains tax relief for multi-homeowners is approaching on May 9." He continued, "Because it is currently understood that permits must be completed and contracts signed by May 9, it seems people believe that after mid-April it will no longer be possible to sell." He then suggested, "We should keep the May 9 deadline, but how about allowing cases where permit applications have been submitted by May 9?" and added, "If necessary, please either clarify the interpretation or consider amending the regulations."
The President also brought up the situation of single-homeowners trying to sell homes that have tenants. He explained, "When a multi-homeowner has a tenant in a property, the rules allow a person without a home to purchase it, provided the tenant can remain until the end of the lease." He went on, "Many single-homeowners argue, 'We want to sell the home we are renting out, so why are we not allowed to, while multi-homeowners receive benefits and we are put at a disadvantage?'" He instructed officials, "Please make an objective judgment as to whether the effect on increasing demand would be greater, or the effect on increasing supply would be greater, and review a revision of the enforcement decree in light of the fact that the arguments of single-homeowners are quite reasonable." He added, "It would be good if you could reach a conclusion by the next State Council meeting."
Lee Jae Myung also delivered a strong message on overall real estate policy. He stressed, "The national task of moving the Republic of Korea (ROK) away from being a real estate speculation republic is something we can never take lightly." He said, "People must come to recognize that real estate is held because it is needed for use, not as a means to make money." He added that taxes, finance, regulation, and supply all need to be addressed together, saying, "We need to overhaul the tax system so that holding real estate unrelated to actual use cannot be advantageous and instead becomes a burden, and thoroughly reform the financial system so that people cannot borrow other people's money to speculate on real estate. And although we are already working on it, I ask that you also focus on ensuring that housing supply plans are carried out without delay and even more swiftly."
The President repeatedly emphasized the need to close loopholes in policy design. He said, "The greater the pressure, in other words the stronger the resistance from vested interests, the more watertight our measures must be." He continued, "We must seal off even a 0.1% possibility, every so-called loophole." He suggested, "If you listen to the views of experts at finding and exploiting loopholes, it will help you close them," and added, "We must establish thorough and flawless measures so that people who work hard can earn money and succeed." He further stressed, "The core task in normalizing what is abnormal is to reduce unearned income."
west@fnnews.com Reporter Seong Seok-woo Reporter