Koo Yoonchul: "Considering Reduction of Capital Gains Tax Exemption for Purchased Rental Apartment Operators"

Emergency Economic Headquarters Meeting and Joint Meeting of Economic and Real Estate Ministers Held

Koo Yoonchul, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks at the "Emergency Economic Headquarters Meeting, Economic Ministers Meeting, and Real Estate Ministers Meeting" held on the 8th at the Government Complex Seoul in Jongno-gu, Seoul. Ministry of Economy and Finance

Koo Yoonchul, Deputy Prime Minister and Minister of Economy and Finance, stated on the 8th, "We are reviewing various measures regarding the criticism that the permanent exemption of capital gains tax surcharges for operators of purchased rental apartment businesses in regulated areas is excessive from a tax equity perspective."

Deputy Prime Minister Koo made these remarks at the Emergency Economic Headquarters Meeting and Economic and Real Estate Ministers Meeting held at the Government Complex Seoul on the morning of the same day. "We are continuing discussions on releasing locked-up properties into the market and ensuring that these properties are transferred to real residents," he said. As previously announced by the government, the temporary suspension of capital gains tax surcharges for owners of multiple homes will end on May 9. Starting May 10, up to 82.5% tax (including local income tax) will be imposed on the capital gains from the sale of homes by owners of multiple properties.

Deputy Prime Minister Koo commented, "Recently, the real estate market is moving away from past overheating and is now undergoing a transition, being reorganized around real residents. Although there are concerns that properties may become locked up again after the capital gains tax surcharges resume on the 9th, the government's policy stance is different from the past."

He further explained, "Speculative purchases have been fundamentally blocked by lending regulations and the land transaction permit system. Expectations for housing price increases have also declined, and as seen by the KOSPI surpassing 7,000, the investment paradigm is shifting from real estate to productive sectors such as the capital market."

He assessed that the legal framework to support housing supply is now becoming visible, noting that three bills, including the Land Compensation Act, aimed at preventing project delays and accelerating the pace of public land development, passed the National Assembly plenary session yesterday. In addition, seven bills including the Special Act on Public Housing, designed to shorten the development period for public land and improve project feasibility, were approved by the Legislation and Judiciary Committee.

Deputy Prime Minister Koo added, "We will continue communicating with the National Assembly to quickly complete the remaining procedures, and will focus all efforts on increasing housing supply so that the public can feel the results of these supply measures."

The meeting also discussed the response status and direction regarding the Middle East war. Deputy Prime Minister Koo explained, "Today, the current account surplus for March was announced at a record high of $37.3 billion, and exports in April exceeded $80 billion for the second consecutive month, which shows that our economy continues to maintain strong fundamentals."

However, he pointed out, "As the Middle East war is prolonged, economic burdens are increasing in some areas, such as high oil prices and supply chain shocks," and emphasized, "We will firmly maintain emergency response measures until the waves of uncertainty subside completely."

He continued, "The supply of major items such as naphtha, garbage bags, and syringes is gradually stabilizing, and the consumer price inflation rate remains lower than in major countries. However, since supply chain uncertainty still exists, we will do our utmost to ease the burden on people's livelihoods."

He also announced that necessary measures for price stabilization, such as the fifth petroleum price ceiling implemented from midnight today, and efforts to swiftly resolve supply chain difficulties for essential goods such as syringes, would be promptly pursued.

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