KAP Korea Asset Purchase to Hold Seminar on Tax Reform for Institutional Purchase-and-Lease Operators

Discussion on Tax Reform for Institutional Purchase-and-Lease Businesses

KAP Korea Asset Purchase, which operates the real estate protection agreement platform 'HedgeHedgy,' will hold a seminar to discuss the development of institutional purchase-and-lease businesses and reforms to the tax system.

KAP Korea Asset Purchase announced on the 11th that, together with Pyungjung Law Firm, it will host the '1st Seminar on Developing Quality Institutional Purchase-and-Lease Businesses and Research on Tax System Reform Issues' at the KB Financial Group Innovation Hub on the 12th. The seminar has been organized to discuss the direction of tax system reforms to revitalize institutional purchase-and-lease businesses.

During the seminar, participants will identify problems with the current system, where institutional purchase-and-lease operators face excessive tax burdens at every stage—from business entry to housing acquisition, ownership, and disposal—and discuss possible improvements. The panel discussion will feature accountant Kang Myungki, Professor Kim Wanyong from the Department of Finance, Accounting, and Taxation at Hanyang Cyber University, Kim Jonggu, CEO of KAP Korea Asset Purchase, and Lee Dongwon, Managing Partner at Pyungjung Law Firm.

According to KAP Korea Asset Purchase, the number of newly registered households for registered lease since the July 10, 2020 measures dropped by 82.7% in five years, from 382,000 households in 2018 to 66,000 households in 2023. In particular, there is an analysis that institutional purchase-and-lease businesses conducted by corporations, REITs, and funds were also subjected to tighter regulations aimed at curbing speculation by multiple homeowners, resulting in a contraction in the supply of rental housing.

A representative from KAP Korea Asset Purchase stated, "The uniform regulations introduced to curb speculation by multiple homeowners are also restricting rental housing supply by corporate purchase-and-lease operators," and added, "Since about 37,700 registered leases in Seoul alone are scheduled for automatic cancellation over the next three years, it is necessary to discuss improvements to the system for institutional purchase-and-lease businesses."