In a briefing with reporters on Tuesday, Policy Chief Kim Yong Beom said that if the government is to find a fundamental solution to real estate problems, the tax system is “an important part” of that effort. But he said it is not something that can be announced “within a month or two,” given its market effects, adding that it requires “long-term, in-depth” talks involving multiple ministries.
Kim’s remarks suggested the government is not immediately moving to tighten tax rules, but sees taxation as a possible tool if market conditions shift sharply.
He said the government had signaled during last year’s Oct. 15 measures that it would review real estate taxes based on principles including tax fairness, and that related research projects are underway.
Kim said there are “many possible combinations” for what to do and when, indicating that ministries are conducting deeper discussions and simulations.
He also addressed President Lee Jae Myung’s comment at a New Year’s news conference that real estate tax regulation would be a “last resort,” saying it did not mean it would be used as a priority, but that the government would prepare thoroughly so it can be used whenever necessary.
Citing Lee’s remarks about the dangers of real estate-driven national decline, Kim said the government is keeping all options open for a fundamental solution.
On the closely watched issue of the temporary suspension of heavier capital gains taxes for multi-homeowners, Kim reaffirmed the principle that it will end as scheduled. “Under the principles of administration, there will be no extension,” he said, while adding that “technical” adjustments are under review.
Kim noted the end date is May 9 and said, in hindsight, that date may have been set too hastily. He said the office is internally considering ending the measure not on May 9 but a month or two later, after contracts are signed and transactions are completed.
He stressed this would not be an extension, but a possible shift of the cutoff date by about one or two months. He added that nothing has been decided.
* This article has been translated by AI.
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