Hong Nam-ki: "Capital Gains Tax, Must Consider Both Relaxation and Real Estate Stability... Concerned About Wrong Signals"

Deputy Prime Minister for Economy Hong Nam-ki is attending the National Assembly's Public Administration and Security Committee's audit of the Ministry of Economy and Finance held at the National Assembly on the 20th, responding to lawmakers' questions. Photo by Yoon Dong-joo doso7@

[Sejong= Asia Economy Reporter Kim Hyunjung] Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki said on the 20th that both the necessity of raising the non-taxable threshold for capital gains tax on one household one house and market stability should be considered in discussions about raising the threshold.

At the National Assembly's Planning and Finance Committee audit on the same day, when Democratic Party lawmaker Jeong Il-young asked for his opinion on the capital gains tax reform within the year, Deputy Prime Minister Hong said, "There seems to be some necessity to adjust the standards for real estate capital gains tax," adding, "However, I am also very concerned that changes in capital gains tax might send the wrong signals regarding the real estate market and act as a factor undermining market stability."

He continued, "The capital gains tax bill is already pending in the National Assembly and will be discussed at the Tax Subcommittee in November," adding, "I will sit down with the lawmakers at the subcommittee to discuss these two factors."

Currently, a revision bill to the Income Tax Act that raises the non-taxable threshold for capital gains tax on one household one house from 900 million won to 1.2 billion won is pending at the National Assembly's Planning and Finance Committee.

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