South Korea debates housing supply reforms and tax deduction changes

Minister of Land, Infrastructure and Transport Kim Yun‑deok said the government is considering selective green‑belt releases and higher floor‑area ratios for private redevelopment to boost housing supply, while warning that demolition of existing units could push prices higher. He also indicated plans to activate non‑apartment housing projects and stressed the need for faster permitting and financing support for private developers.

National Tax Service Commissioner Im Kwang‑hyun criticized the long‑term holding special deduction, noting it disproportionately benefits high‑value homes, with about 90 % of the tax relief concentrated in Seoul—particularly Gangnam and Yongsan districts. He called the current unlimited 80 % deduction regressive and urged the government to fine‑tune the policy to avoid guaranteeing unearned income for luxury properties.