Go to Contents Go to Navigation

(LEAD) S. Korea to impose steeper taxes on multiple home owners to curb housing prices

All News 10:50 July 10, 2020

(ATTN: ADDS details, remarks in last 5 paras)

SEJONG, July 10 (Yonhap) -- South Korea is set to announce plans to levy tougher taxes on multiple home owners, Finance Minister Hong Nam-ki said Friday, in the latest move to curb housing prices.

The government will raise a punitive tax rate of property ownership tax on multiple home owners and lay out plans to supply more homes in the main regions, Hong told a meeting with economy-related ministers.

The government will announce the plans later in the day.

Hong's remarks came less than a month after the government rolled out measures to stem a further rise in housing prices.

On June 17, the government announced its toughest measures yet to rein in rising housing prices in greater Seoul and some unregulated areas, as a series of steps, including tax hikes and loan regulations, failed to put a brake on soaring home prices.

Stricter lending rules were applied to curb excessive demand for home-backed loans amid cheap borrowing costs, and almost half of the Seoul metropolitan area was put under tighter rules.

Finance Minister Hong Nam-ki speaks at a meeting with economy-related ministers on July 10, 2020. (Yonhap)

Previously, the government had planned to raise the property ownership tax to up to 4 percent from up to 3.2 percent.

Although Hong did not elaborate, the government is widely expected to further raise the ownership tax to up to 6 percent.

Also the government is expected to raise the capital gains tax for people who pocket short-term gains by buying and selling homes.

Hong pledged that the government will rein in speculative investments for homes, but it will continue to ease tax burdens for first-time home buyers.

"The government will maintain its stance of relaxing the tax burden for people with no homes or one home," Hong said.


Send Feedback
How can we improve?
Thanks for your feedback!