The government has assessed that the real estate market is transitioning to a focus on actual residents, prompting a review of tax benefits for rental property owners.
Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol stated on May 8 during a meeting at the Government Complex in Seoul that, "The recent real estate market is moving away from overheating and is being restructured around actual residents." He noted that loan regulations and land transaction permits are effectively curbing speculative purchases, while expectations for rising housing prices are diminishing.
The government aims to enhance housing supply in Seoul and the surrounding metropolitan area while blocking speculative demand and fostering a trading environment centered on actual residents. With the recent passage of the 'Land Compensation Act' in the National Assembly, the government plans to focus on generating tangible supply outcomes that citizens can feel.
Additionally, in response to concerns about a potential inventory freeze following the expiration of the capital gains tax exemption for multiple homeowners on May 9, various measures are under consideration. This includes reviewing the appropriateness of tax benefits for rental property owners in designated adjustment areas.
On the same day, Koo emphasized the resilience of the economy, referencing the Bank of Korea's report on the current account balance for March, which recorded a historic surplus of $37.3 billion. He noted that exports exceeded $800 billion for two consecutive months, indicating strong fundamentals.
However, he acknowledged that the prolonged conflict in the Middle East is exacerbating economic pressures, including high oil prices and supply chain disruptions. He assured that the government would maintain a firm response until uncertainties are fully resolved.
The government also reported that the supply of key items like NAFTA, syringes, and trash bags is stabilizing, and consumer prices remain lower than in major countries. Nonetheless, it remains vigilant about supply chain uncertainties and is committed to alleviating the burden on citizens.
Furthermore, the government plans to continue implementing price stabilization measures, including the fifth round of the oil price cap and addressing supply chain issues for essential items like syringes.
* This article has been translated by AI.
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