"Shift Toward Real-Residence Demand"... Government Says It Is Reviewing Cuts to Capital Gains Tax Benefits for Rental Business Owners

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[Financial News] Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said on the 8th that the recent real estate market is "in a transition period, moving away from the overheated patterns of the past and being reorganized around end users." He also said the government is reviewing measures to address concerns about a freeze in listings.
Koo made the remarks at the Emergency Economic Headquarters Meeting and the Deputy Prime Ministers and Ministers Meeting on Economy and Real Estate, which he chaired at Government Complex Seoul on the 8th.
He added that although there are concerns that a listing freeze could emerge after May 9, when the suspension of heavier capital gains taxes ends, "the government's policy stance is different from the past." He explained that speculative buying has been blocked at the source through lending regulations and the land transaction permit system, expectations for house price gains are fading, and investment is shifting from real estate to productive sectors such as the capital market.
The government plans to focus on expanding housing supply, especially in Seoul and the Seoul metropolitan area, while creating market conditions that allow transactions for actual residence to proceed smoothly. In particular, it intends to speed up supply policies on the belief that "trust that homes will be supplied in the places people prefer is the fundamental solution to stabilizing the housing market."
Meanwhile, the government said that with the Land Compensation Act and related bills passing the National Assembly of the Republic of Korea on the 7th, a legal foundation is being put in place to support expanded supply. It said it will concentrate policy efforts so the public can directly feel the results.
The government also said it is discussing various measures to bring back listings that are currently off the market so they can be supplied to end users. It added that it is also reviewing the capital gains tax exemption from heavier taxation that had been permanently granted to rental apartment operators purchasing homes in Areas Subject to Adjustment.
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going@fnnews.com Choi Ga-young Reporter