Gangwon Province Goes All-Out to Tackle Unsold Apartments and Vacant Homes with Up to 50% Acquisition Tax Reduction

Gangwon Special Self-Governing Province has rolled out a strong tax support initiative to address the chronic issues of unsold apartments and vacant homes.

View of Gangwon Provincial Government Building. Provided by Gangwon Provincial Government.

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Summary of Amendments (Local Tax Special Cases Limitation Act, Exemption Ordinance). Provided by Gangwon Province

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The provincial government announced that a partial amendment to the “Gangwon Special Self-Governing Province Provincial Tax Reduction Ordinance,” which focuses on promoting population influx and revitalizing the real estate market, passed the provincial council’s plenary session on the 3rd and will be fully implemented starting April 17, 2026.

With this ordinance amendment, individuals who purchase unsold apartments after construction in the province will receive a total 50% reduction in acquisition tax-25% under the Local Tax Special Cases Restriction Act, plus an additional 25% reduction under the provincial ordinance.

For those who build a new house or building within three years after demolishing a vacant home, acquisition tax will also be reduced by up to 50% (25% by law + 25% by ordinance), with a maximum reduction limit of 1.5 million won.

Additionally, in population decline focus areas (Gangneung, Donghae, Sokcho, and Inje), the same 50% acquisition tax reduction (25% by law + 25% by ordinance) will apply to people without a home or to a single household owning one home when purchasing a property valued at 300 million won or less.

Furthermore, the criteria for tax reduction on homes in population decline areas have been expanded, now applying to properties valued up to 1.2 billion won, with a maximum reduction limit of 1.5 million won.

Alongside these measures, the province has newly instituted acquisition tax reductions for worker rental housing and for business real estate owned by domestic companies returning from overseas to population decline areas, thereby strengthening tax support to improve the living conditions of local corporate employees and encourage corporate investment.

These tax reduction benefits will apply to cases where tax liability arises after the ordinance is officially promulgated.

Yoon Wooyoung, Director of Administration for Gangwon Special Self-Governing Province, stated, “This ordinance amendment was prepared as a proactive response to the amendment of the higher-level Local Tax Special Cases Restriction Act and is expected to help stabilize the real estate market by addressing the issues of unsold apartments and vacant homes in the province. We also expect it will contribute to regional development and counter the risk of depopulation by increasing the influx of residents and improving living conditions.”

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