South Korea Deputy PM Gu Yun-cheol to Scale Back Rent‑to‑Own Tax Exemption amid Housing Inventory Concerns

Deputy Prime Minister and Finance Minister Gu Yun-cheol chaired an emergency economic meeting in Seoul, signalling the government’s intent to reduce the capital‑gains‑tax exemption that has long benefited rent‑to‑own (buy‑to‑lease) apartment operators in designated areas. He noted that the temporary suspension of the multiple‑home owner tax surcharge ends on March 9, after which up to 82.5% tax (including local income tax) will apply to housing‑sale profits.

Gu addressed worries that ending the surcharge could trigger a “lock‑up” of housing units, but asserted that current policy differs from the past: loan‑to‑value caps and a land‑sale‑permit system block speculative buying, housing‑price expectations have fallen, and investors are shifting from real estate to capital‑market assets. The government will continue to discuss ways to release held‑up units to genuine occupants and is reviewing the tax break’s fairness.

He also highlighted recent legislative progress on a land‑compensation law aimed at accelerating public‑land housing projects. On macro‑economics, Gu pointed to a record March current‑account surplus of $373 billion and two consecutive months of exports surpassing $800 billion, while acknowledging higher oil prices and supply‑chain strains from the ongoing Middle East conflict. The administration will keep emergency measures such as the oil price cap in place until uncertainties subside.