Jo Incheol Proposes Amendment to the Restriction of Special Taxation Act

Jo Incheol, a lawmaker from the Democratic Party of Korea (representing Gwangju Seo-gu Gap), announced on April 29 that he had sponsored a partial amendment to the Restriction of Special Taxation Act, which aims to extend tax benefits for acquiring homes in depopulated areas by an additional five years.

Under the current law, when acquiring a home in one of the 89 designated depopulated areas or 18 areas of concern for depopulation nationwide, a special provision allows the acquired home to be excluded from the housing count when calculating capital gains tax and comprehensive real estate tax on existing properties. However, this provision is set to expire at the end of this year, raising concerns about the sustainability of the policy.

Jo Incheol, Member of the National Assembly.

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If the amendment passes, it is expected that more urban residents will purchase homes in depopulated areas for use as 'second homes.' This is anticipated not only to revitalize the subdued local housing markets but also to stimulate the regional economy by increasing the resident population.

Jo emphasized, “To help local residents protect their communities and to create an environment that attracts newcomers, long-term and stable tax support is essential, not just temporary measures. Through the passage of this bill, I aim to reduce the burden of purchasing homes in depopulated areas and lead efforts to address the risk of local extinction by expanding the resident population.”

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