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South Korea advances tax reforms and housing supply measures

Updated 7 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-09 06:13 UTC → 2026-09-17 03:06 UTC · added removed

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. Further efforts to accelerate supply in Building on these efforts, the Seoul Metropolitan Area include FSC announced plans to establish a 500 billion 3 trillion won pilot program Kamco Fund by the Ministry first half of Land, Infrastructure and Transport and the Korea Land next year. Funded equally by public and Housing Corporation (LH) to preemptively purchase idle land for multi-family housing. To ease financial constraints, private sectors, approximately 60% of the FSC fund is implementing a two-year temporary suspension of PF equity ratio regulations designated for residential projects and expanding PF guarantee scales. Additionally, the Korea Real Estate Board projects, which is providing field support expected to resolve construction cost disputes support the supply of roughly 18,000 housing units. The Financial Supervisory Service is also monitoring 325 PF project sites in reconstruction and redevelopment projects. the Seoul metropolitan area to facilitate rapid normalization.

Versions

  1. 2026-09-17 03:06 UTC South Korea advances tax reforms and housing supply measures
  2. 2026-09-09 06:13 UTC South Korea advances tax reforms and housing supply measures
  3. 2026-08-28 02:37 UTC South Korea advances tax reforms and housing supply measures
  4. 2026-08-26 07:33 UTC South Korea advances tax reforms and housing supply measures
  5. 2026-08-14 14:41 UTC South Korea advances tax reforms and housing supply measures
  6. 2026-08-03 09:41 UTC South Korea ultra‑high‑value home tax reforms, loan surge
  7. 2026-07-29 03:44 UTC South Korea ultra‑high‑value home tax reforms
  8. 2026-07-26 10:09 UTC South Korea ultra‑high‑value home tax reforms

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