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 it. But he said it is not something that can be announced within a month or two because of its effect on the market.
“It’s a topic that needs long-term, in-depth discussions involving multiple ministries,” Kim said.
His remarks suggested the government is not immediately moving to tighten tax rules, but still views tax policy as a tool for a broader solution. That has also fueled speculation that tax measures could be used if market conditions shift sharply.
Kim 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, adding that it is conducting research projects to support that work.
“When you put everything together, there are so many possible combinations for what to do, when and in what stages,” he said, indicating that interagency discussions and simulations are underway.
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.” Kim said it did not mean it would be used as a priority, but that the government would be thoroughly prepared to use it if needed.Citing the president’s warning about the dangers of an economy overly dependent on real estate, Kim said the government is keeping all options open for a fundamental solution.
On a closely watched issue, Kim reaffirmed the principle that the temporary suspension of heavier capital gains taxes for owners of multiple homes 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 suspension is set to expire May 9, saying in hindsight that date may have been decided too hastily. He said the government is internally considering ending the measure one or two months later, not on May 9 but after allowing time for transactions to be completed following contract signing.
He stressed this would not be an extension of the suspension itself, 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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