Heavy Capital Gains Tax for Multiple Homeowners Reinstated; Government Says 'Market Impact Limited'

The grace period for heavy capital gains tax on multiple homeowners expired on May 9, and the increased tax rates will be applied again starting May 10. Consequently, owners of multiple homes will have to pay more tax when selling their properties.

The government stated that this change will not significantly impact the real estate market. Kim Yong-beom, Senior Secretary to the President for Policy, acknowledged the possibility of reduced property listings due to the policy change but asserted that price increases are moderate, driven by the widespread understanding that speculative excess profits are not permitted.

The government is preparing supplementary measures to encourage the release of properties onto the market, such as considering temporary permission for gap investment transactions by non-residents who own a single home after the heavy taxation is reinstated.