김윤덕 국토장관 “전월세 안정 위해 충분한 주택 공급”

On November 11th, Korea's Minister of Land, Infrastructure and Transport, Kim Yoon-duck, acknowledged that the government's housing reform proposal aims to normalize the real estate market through a focus on homeownership. He assured the House of Representatives' Committee on Land and Transportation that measures will be taken to ensure sufficient housing supply to stabilize the month-end tax market before the reform takes effect in 2028.

The minister pointed out that homeowners are encouraged to stay, while absentee landlords face higher taxes, causing concern among renters. He also responded to questions from opposition lawmakers about the discrepancy between housing resale policies and land transfer permits. Kim Yon-tack, a first-class official at the Ministry of Land, stated that they are reviewing ways to extend the period of tax exemption for those purchasing homes in designated land transfer permit zones, such as applying it until the year-end for those who move in within four months of the permit's issuance.

Currently, buyers in these zones must live in the property for at least two years after acquiring it. However, for those buying rental properties, the tax exemption is extended until the end of the lease term. This temporary measure was introduced after receiving complaints that properties with remaining lease terms are difficult for buyers to acquire due to the tax burden.

The government made this exception in May 2023. These special provisions will apply until December 31st of this year and will result in a significant increase in the threshold for selling properties with tenants in the following year. The government's housing reform proposal has been criticized for heavily burdening homeowners with taxes, encouraging property sales, while preventing departures due to the residency obligation of the land transfer permit system.

The government is currently discussing ways to extend the tax exemption period and update the "rental standard date" to December 12th to facilitate the smooth implementation of the housing reform and broaden the range of properties eligible for sale.