Jo Man-hee, center, a senior finance ministry official, speaks to reporters on real estate policy at the government complex in Sejong, Thursday. Yonhap
The government will grant a grace period of four to six months for owners of multiple homes ahead of the planned end of a temporary exemption from heavy capital gains taxes, the finance ministry said Thursday.
The temporary exemption will still end as scheduled on May 9, as President Lee Jae Myung has emphasized the need to stabilize rising housing prices and curb real estate speculation, particularly in the greater Seoul area.
The policy has prompted owners of multiple properties to sell their homes to avoid hefty taxes.
"All property sale contracts signed after May 9 will be subject to a heavy capital gains tax," Jo Man-hee, a senior finance ministry official, told reporters, adding that a grace period will be given depending on rental situations.
The ministry said the latest measures have been prepared to improve consistency between systems and minimize public inconvenience, reflecting the practical difficulty of selling homes currently occupied by tenants and the need to strengthen protections for renters.
Rental listings are displayed on the window of a real estate agency in Seoul, Sunday. Yonhap
Under the measure, a four-month grace period will be given for properties in Seoul's upscale Gangnam and Yongsan districts and up to six months for newly designated speculative zones in all other Seoul districts and some areas of surrounding Gyeonggi Province, the ministry said.
The grace period will apply to cases in which final payments are completed or ownership registration is finalized within the specified time frame.
For homes currently occupied by tenants, the government will temporarily ease owner-occupancy requirements under the land transaction permit system, the ministry said.
Source: Korea Times News
