The government is set to gather public input on revising real estate transaction and holding taxes. It will also implement measures to expand housing supply and stabilize living conditions for citizens by easing regulations on redevelopment and reconstruction.
According to the '2026 Second Half Economic Growth Strategy' released on July 14, the government plans to collect public opinions on real estate taxes before formulating reasonable improvement measures.
The corporate land tax system will also be revised. The government aims to rationalize the classification criteria for land taxation and normalize the tax burden at the holding and transfer stages, while expanding rental supply in industrial complexes to encourage productive land use. Additionally, it will mandate the disposal of unused agricultural land.
Yoo Byeong-hee, Director of the Economic Policy Bureau at the Ministry of Finance, stated, "We will gather diverse opinions through a national debate on real estate taxes and develop reasonable improvement measures."
The government is accelerating efforts to increase housing supply. In the second half of this year, it plans to begin construction on a total of 12,000 homes in the third new towns, including 6,800 in Namyangju Wangsil and 1,100 in Incheon Gyeyang.
The construction schedule for major public sites, such as Taereung and Seongnam, will be moved up from 2030 to 2029. The government will also expedite follow-up procedures, including preliminary site investigations and relocation plans.
To increase the pace of land supply, the government will pursue institutional improvements. This includes parallel procedures for district designation and planning, shortening consultation periods with relevant agencies, and starting basic land compensation surveys early before district designation.
Financial support and regulatory easing for revitalizing redevelopment and reconstruction projects are also under consideration. The approval rate for remodeling project plans will be lowered from the current 75% to 70%.
Public rental policies will also be revised. The government aims to enhance the quality of public rental housing and increase supply for young people, while establishing a public purchase rental REIT to acquire existing homes for rental supply.
Measures to protect jeonse deposits will be implemented. The security deposits of tenants will be managed by the Monthly Rent Stabilization Fund, and landlords will receive monthly rental income through a trust program.
Jo Man-hee, Director of the Tax Policy Division at the Ministry of Finance, noted, "There are both calls for easing and strengthening holding and transaction taxes, so we plan to reflect public opinions through discussions before making a decision."
According to the '2026 Second Half Economic Growth Strategy' released on July 14, the government plans to collect public opinions on real estate taxes before formulating reasonable improvement measures.
The corporate land tax system will also be revised. The government aims to rationalize the classification criteria for land taxation and normalize the tax burden at the holding and transfer stages, while expanding rental supply in industrial complexes to encourage productive land use. Additionally, it will mandate the disposal of unused agricultural land.
Yoo Byeong-hee, Director of the Economic Policy Bureau at the Ministry of Finance, stated, "We will gather diverse opinions through a national debate on real estate taxes and develop reasonable improvement measures."
The government is accelerating efforts to increase housing supply. In the second half of this year, it plans to begin construction on a total of 12,000 homes in the third new towns, including 6,800 in Namyangju Wangsil and 1,100 in Incheon Gyeyang.
The construction schedule for major public sites, such as Taereung and Seongnam, will be moved up from 2030 to 2029. The government will also expedite follow-up procedures, including preliminary site investigations and relocation plans.
To increase the pace of land supply, the government will pursue institutional improvements. This includes parallel procedures for district designation and planning, shortening consultation periods with relevant agencies, and starting basic land compensation surveys early before district designation.
Financial support and regulatory easing for revitalizing redevelopment and reconstruction projects are also under consideration. The approval rate for remodeling project plans will be lowered from the current 75% to 70%.
Public rental policies will also be revised. The government aims to enhance the quality of public rental housing and increase supply for young people, while establishing a public purchase rental REIT to acquire existing homes for rental supply.
Measures to protect jeonse deposits will be implemented. The security deposits of tenants will be managed by the Monthly Rent Stabilization Fund, and landlords will receive monthly rental income through a trust program.
Jo Man-hee, Director of the Tax Policy Division at the Ministry of Finance, noted, "There are both calls for easing and strengthening holding and transaction taxes, so we plan to reflect public opinions through discussions before making a decision."
* This article has been translated by AI.
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