[6·17 Real Estate Measures] Government Expands Regulated Areas and Tightens Loans... Also Targets Corporate Blind Spots (Update)

[Sejong=Asia Economy Reporter Kim Hyunjung] The Moon Jae-in administration has announced its 22nd real estate measure, which includes designating additional regulated areas to eradicate gap investment and strengthening the requirements for housing mortgage loans for actual demand. The plan also targets corporate sales, previously considered a blind spot, by increasing the burden of comprehensive real estate tax and capital gains tax.

On the morning of the 17th, Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki held a meeting with related ministers at the Government Complex Seoul and stated, "Under the principle of eradicating speculative demand and protecting actual demanders, the government will block factors overheating the housing market and ensure the follow-up measures of existing policies are implemented without fail."

Deputy Prime Minister Hong emphasized, "Participants agreed on the necessity to thoroughly manage factors causing housing price rebounds in Seoul due to development prospects amid abundant liquidity and low interest rates, and to actively respond to market disruption factors such as real estate corporate transactions and gap investments."

First, to block the inflow of speculative demand, the government will designate additional regulated areas and consider designating land transaction permission zones near development prospects.

They will also tighten financial channels. Regarding so-called 'gap investment,' where buyers purchase homes with jeonse deposits to gain capital gains, the government decided to strengthen the requirements for housing mortgage loans for actual demand. Specifically, for housing mortgage loans, the obligation to dispose of or move in when purchasing a home in regulated areas will be strengthened, and restrictions on jeonse loans will be tightened when purchasing homes in speculative or speculative overheating zones.

The government will also focus on corporate investments, which have been considered a tax blind spot in the real estate market. First, mortgage loan regulations will be significantly strengthened for individual and corporate businesses engaged in housing sales and rental businesses. The tax burden will also increase, with a substantial rise in the comprehensive real estate tax burden on corporations and higher additional tax rates on housing capital gains.

Additionally, regulations on redevelopment projects will be revised, including strengthening safety inspections for reconstruction, and follow-up measures for the December 16th policy, which includes raising comprehensive real estate tax rates, and the May 6th supply plan will be implemented together.

Deputy Prime Minister Hong stressed, "The government will continue to closely monitor real estate market trends and actively respond to market instability factors by promptly implementing discussed measures."

Specific details will be announced by Minister of Land, Infrastructure and Transport Kim Hyun-mi through an additional briefing later that morning.

This content was produced with the assistance of AI translation services.