[비즈한국] The government has reaffirmed that the contract deadline for the grace period of capital gains tax surcharges is set for May 9th and has decided to review a plan to adjust the payment and registration deadline for land transaction permit zones to 4 months from the date of approval. For homes currently occupied by tenants, the requirement for actual residency will be deferred during the lease term; however, this exception will be capped at a maximum of 2 years from the date of the policy announcement and will be limited to purchases by those who do not currently own a home. The government also proposed adjustments to the system for registered rental homes, requiring them to be sold within a certain period after the mandatory rental period ends to retain the benefit of exclusion from the capital gains tax surcharge.
At a cabinet meeting held at the Blue House on the 10th, presided over by President Lee Jae-myung, the government discussed detailed adjustments to manage both the risk of a market freeze and potential regulatory loopholes, while maintaining the broader direction of ending the surcharge grace period under the principle that “there are no unlimited exceptions.”
This follow-up measure is interpreted as an effort to minimize market rigidity that may occur during the transition of the system, without wavering from the policy stance of ending the capital gains tax surcharge grace period. It reflects an intent to both curb the expectant psychology—fueled by repeated extensions—that “it will be postponed again anyway,” and to resolve practical bottlenecks created by the land transaction permit system and actual residency requirements.
The fact that the government has once again set “contracts by May 9th” as the baseline is in the same vein. Multi-home owners have previously delayed sales in anticipation of further extensions, which has exacerbated the phenomenon of homes being withheld from the market. By clearly fixing the end date, the government is sending a message that a wait-and-see approach will no longer work. However, the strategy is characterized by an attempt to absorb the shock by adjusting practical rules within a range where transactions can actually be completed, rather than unilaterally pushing through the tax policy.
The plan to adjust the balance payment and registration deadline for land transaction permit zones to “4 months from the permit date” is also a measure that reflects reality. Considering the time required for permit applications, reviews, financing, and registration, an overly short deadline could lead to an increase in cases where contracts are signed but transactions cannot be finalized. The move addresses concerns that such bottlenecks could lead to a rapid market freeze during the phase-out of the grace period.
Providing exceptions to the actual residency requirement for homes with tenants is also a supplementary measure to prevent transaction stagnation. Under the land transaction permit system, buyer residency is generally required, but since immediate occupancy is impossible for homes with existing tenants, sales were often effectively blocked. The government intends to defer the residency requirement for the duration of the lease, but mandates residency after the lease ends to ease transaction bottlenecks.
However, the exception is limited to a maximum of 2 years from the date of the policy announcement and applies only to purchases by non-homeowners. This is the context behind the President drawing the line by stating, “We cannot leave it unlimited.” This reflects concerns that opening the exception too wide could lead to the de facto approval of “gap investments,” where purchases are made with existing tenant deposits. It is seen as a compromise the government has chosen between the two goals of normalizing transactions and blocking speculation.
During the meeting, the necessity of revising the system for multi-home owners holding registered rental homes was also discussed. Homes registered under the rental business scheme have a structure where the benefits of exclusion from capital gains tax surcharges can be maintained for a long time even after the mandatory rental period (8 years) ends. This has been pointed out as a loophole that conflicts with the policy direction of ending the surcharge grace period. The government’s announcement that benefits will only be maintained if the property is sold within a certain period after the lease ends stems from this same concern.
The government is repeatedly emphasizing that these measures are not intended to relax anti-speculation rules, but rather to supplement the system to reduce practical confusion during the transition. Immediately after the meeting, Deputy Prime Minister Koo explained, “The most frequent concern from the public is ‘What should I do if I have several homes and cannot move in immediately because they are rented out?’” He added, “Considering the difficulties faced by the public and the market situation, we intend to ease public concerns by deferring the actual residency requirement while the property is rented, and requiring move-in once the lease period expires.”
Regarding the acceptable rental period, he stated firmly, “It applies to the tenant’s remaining first lease term, and it is difficult to recognize contract renewals; the exception will be capped at 2 years.” Regarding the timing of the announcement of supplementary measures, he said, “We will quickly revise the enforcement decree this week to clear this up definitively in this manner.”