Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol announced today (15th) that “we will devise a plan to rationalize the real estate tax system by comprehensively considering factors such as guiding the flow of funds into productive sectors, the principle of tax according to the taxpayer’s ability, and public acceptability.”
In a joint briefing on real estate measures held at the government complex in Seoul, Deputy Prime Minister Koo stated, “We have prepared measures to manage the real estate market stably based on the principle of balancing supply and demand.”
He added, “We will examine rationalizing the tax system by adjusting property and transaction taxes and mitigating the demand concentration in specific areas through discussions in research projects and task force (TF) with related ministries.”
However, he explained that “the specific direction, timing, and order of the tax system reform will be comprehensively reviewed considering its impact on the real estate market and tax equity.”
Although today’s real estate measures focused on ‘expanding regulated areas’ and ‘tightening loan regulations,’ it can also be interpreted as a possibility to introduce tax measures in the future.
Regarding regulated areas, Deputy Prime Minister Koo stated, “We will expand the designation of land transaction licensing zones and regulated areas to block speculative demand,” and added, “We will designate all of Seoul and 12 regions in Gyeonggi as land transaction licensing zones, areas subject to adjustment, and speculative overheated districts, imposing residential obligations for home purchases and applying strengthened regulations on loans and taxes.”
Although not included in this measure, he also reaffirmed his commitment to expanding housing supply.
Deputy Prime Minister Koo noted, “We will more swiftly implement the September 7th supply measures and check the implementation status every two weeks through meetings of real estate-related ministers, with particular emphasis on ensuring the rapid supply in preferred areas in Seoul.”
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