Monitor this situation.

Unsubscribe anytime.

[SITUATION] · [ACTIVE] · [BUSINESS]

9 clusters · 26 sources · 61 days · First seen 2 months ago · Last updated 4 days ago

South Korea advances tax reforms and housing supply measures

Overview

The South Korean government is advancing tax reforms and supply-side measures to stabilize a volatile housing market. Central to the reform is the tightening of the long-term holding special deduction, which would eliminate the 10-year requirement and cap benefits at 1 billion won. National Tax Service Chief Im Kwang-hyun has characterized current deductions as regressive, noting that 87.9% of total comprehensive real estate tax (CET) deductions are applied to Seoul properties.

Under the ‘2026 Local Tax Reform Plan,’ the Ministry of the Interior and Safety is expanding acquisition tax exemptions for first-time homebuyers to include residential officetels. For individuals under 40 purchasing a first home valued at 1.2 billion won or less, the exemption limit will increase from 2 million won to 3 million won.

To bolster housing supply and address liquidity, the Financial Services Commission (FSC) and the Ministry of Land, Infrastructure and Transport have launched follow-up measures to the ‘August 13 Real Estate Measures.’ This includes expanding construction project financing (PF) support from 26.3 trillion won to over 47.8 trillion won. On September 1, the Financial Supervisory Service and the Korea Development Bank began operating specialized centers to manage PF financial difficulties and construction company liquidity.

Building on these efforts, the FSC announced plans to establish a 3 trillion won Kamco Fund by the first half of next year. Funded equally by public and private sectors, approximately 60% of the fund is designated for residential projects, which is expected to support the supply of roughly 18,000 housing units. The Financial Supervisory Service is also monitoring 325 PF project sites in the Seoul metropolitan area to facilitate rapid normalization.

Entities

South Korea · Financial Services Commission · Financial Supervisory Service · Ministry of Land, Infrastructure and Transport · Banpo Jae

Claims

What the coverage asserts, and how many sources carry each claim.

Coverage disagrees

Sources make claims that cannot both be true. CLSTR reports the disagreement; it does not decide who is right.

"The government is reviewing elimination of the holding‑period requirement for the long‑term special deduction and setting a cap of 1 billion won on the deduction amount."

vs

"The South Korean government is considering removing the holding‑period requirement for the long‑term holding special deduction and limiting the deduction amount to 10 billion won."

The first claim states the deduction cap is 1 billion won, while the second claim states the cap is 10 billion won.
"The estimated 2023 holding‑tax bill for a Banpo Jae 84 ㎡ unit is 18.1 million won, a 40 % increase over the previous year and a record level."

vs

"The projected 2023 holding tax for a 84 m² unit in the 반포자이 complex is 1.81 million won, a rise of more than 40 % from the previous year."

The first claim states the 2023 holding tax for a Banpo Xi 84m² unit is 18.1 million won, while the second claim states it is 1.81 million won.

[DISPUTED] The government is reviewing elimination of the holding‑period requirement for the long‑term special deduction and setting a cap of 1 billion won on the deduction amount.
[DISPUTED] The South Korean government is considering removing the holding‑period requirement for the long‑term holding special deduction and limiting the deduction amount to 10 billion won.
[DISPUTED] The estimated 2023 holding‑tax bill for a Banpo Jae 84 ㎡ unit is 18.1 million won, a 40 % increase over the previous year and a record level.
[DISPUTED] The projected 2023 holding tax for a 84 m² unit in the 반포자이 complex is 1.81 million won, a rise of more than 40 % from the previous year.
[● 2 SOURCES] The Ministry of Land, Infrastructure and Transport and LH announced a public land purchase program. www.tfmedia.co.kr · www.tokenpost.kr
[○ 1 SOURCE] Under the proposed change, capital‑gains tax on apartments priced over 40 billion won could increase by two to five times.
[○ 1 SOURCE] For a Banpo Jae 84 ㎡ unit bought for 1.18 billion won and sold for 48.3 billion won, current capital‑gains tax is 212.78 million won; with the 10 billion won cap it would rise to about 789.1 million ₩
[○ 1 SOURCE] 56 % of South Korean respondents expect house prices to rise in the second half of 2026, a 4‑point increase from the first half.
[○ 1 SOURCE] The main reasons cited for expected price rises were core‑city price gains (32.33 %) and supply shortages in Seoul (16.95 %).
[○ 1 SOURCE] Proposals include raising the effective holding‑tax rate for luxury apartments to about one percent.

Timeline

4 days ago

[BUSINESS] 5 sources
South Korea to launch 3 trillion won Kamco Fund for real estate PF
South Korea will establish a 3 trillion won Kamco Fund by early next year to stabilize distressed real estate PF projects and support the supply of approximately 18,000 housing units.
13 days ago

[BUSINESS] 9 sources
South Korea launches 500 billion won land purchase to boost housing supply
South Korea is launching a 500 billion won land purchase pilot and easing PF regulations to accelerate housing supply in the Seoul Metropolitan Area.
24 days ago

[BUSINESS] 5 sources
South Korea expands housing supply support and financial aid
South Korea is expanding housing supply support by increasing financial aid to over 47.8 trillion won and launching specialized centers to resolve project financing and construction funding difficulties.
26 days ago

[BUSINESS] 6 sources
South Korea expands first-time homebuyer tax exemptions to include officetels
South Korea is expanding acquisition tax exemptions for first-time homebuyers to include residential officetels and increasing benefits for youth to ease housing burdens.
about 1 month ago

[BUSINESS] 2 sources
South Korea announces housing supply boost and tax reforms
South Korea is boosting construction financing to 47.8 trillion won and introducing loans for young buyers to stabilize its housing market and address rising property prices.
about 2 months ago

[BUSINESS] 6 sources
South Korea proposes higher property taxes as household loans surge
South Korea plans higher property taxes for wealthy owners to tame its hot housing market, while household loans jumped sharply in July, led by mortgage demand.
about 2 months ago

[BUSINESS] 5 sources
South Korea to tighten tax breaks on ultra‑luxury homes, boosting capital gains levies
South Korea plans to limit tax deductions for ultra‑luxury homes, potentially raising capital‑gains tax 2‑5 × and holding tax sharply, while a survey shows 56 % expect house prices to rise later this year.
about 2 months ago

[POLITICS] 5 sources
South Korea to raise property tax on ultra‑high‑value single homes
South Korea will tighten its comprehensive property tax on ultra‑high‑value homes, ending generous long‑term holding deductions that saved owners billions, especially in Seoul’s Gangnam district.
2 months ago

[BUSINESS] 2 sources
South Korea to raise tax on ultra‑high‑value primary homes
South Korea will increase holding tax on ultra‑expensive primary homes, with possible short‑term capital‑gains relief; meanwhile record‑high sales in Gangnam reflect market expectations of continued reform.

Sources

biz.heraldcorp.com · blockchainseoul.kr · housing-post.com · idsn.co.kr · jnilbo.com · joongboo.com · joseilbo.com · kfgo.com · kyeonggi.com · m.imaeil.com · m.koreaherald.com · m.sportalkorea.com · memesita.com · mix929.com · news.donga.com · news.heraldcorp.com · sateconomy.co.kr · seoul.co.kr · sgsme.sg · sisajournal.com · stv.seoul.co.kr · tfmedia.co.kr · tokenpost.kr · wkzo.com · world-today-news.com · wsau.com

This summary has been updated 7 times: see revision history