Government weighs brief grace period before tax surcharge ends

Jan 29, 2026, 10:33 am

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Presidential Policy Chief Kim Yong-beom and Industry Minister Kim Jeong-gwan talk during a public briefing on the economic growth strategy at the presidential office on Jan. 9. /Yonhap

The presidential office said Tuesday it is considering ending the suspension of higher capital gains taxes on multiple homeowners a month or two after May 9, a move aimed at easing market disruption as the policy sunsets.

While the suspension is set to expire on May 9 as a matter of principle, officials acknowledged that the government bears responsibility for having extended the measure repeatedly over the past four years, which fueled expectations in the market. Given the long timelines required to complete property transactions, the administration is reviewing temporary measures to smooth the transition.

Kim Yong-beom, chief of presidential policy, said at a briefing that the government is internally reviewing options to end the suspension one or two months after May 9, rather than on that date itself.

“Because the policy has been extended as a matter of course for four years, many assumed it would happen again,” Kim said. “The government bears some responsibility, and we also reflect on whether we should have made clear earlier that the sunset would proceed.”

Kim explained that to recognize transactions finalized over an extended period, revisions to an enforcement decree would be required. The government is considering recognizing sales where contracts are signed by May 9 and transactions are completed within a certain period afterward.

He stressed repeatedly that this would not amount to an extension of the policy. “The suspension will end. This does not undermine the principle,” he said.

In a written briefing following Kim’s remarks, the presidential policy office reiterated that the tax surcharge suspension for multiple homeowners will end, adding that the comments reflected efforts to analyze various scenarios closely and prepare detailed supplementary measures.

Kim also noted that for areas newly designated as regulated zones under the Oct. 15 housing measures, some homeowners may not have fully recognized that higher capital gains taxes would apply. Relevant ministries are therefore reviewing whether to vary the timing of the policy’s end by region. He said a related plan would be prepared and put up for legislative notice within one to two weeks.

Additional tax reforms are also under preparation. Kim said research on tax changes was commissioned at the time of the Oct. 15 measures, emphasizing that real estate taxation has a significant impact on markets and must be handled with caution. “This is not an issue that can be concluded within a month or two,” he said.

Referring to President Lee Jae-myung’s past warning about the dangers of excessive real estate dependence, Kim added that the administration is not prioritizing immediate tax changes but is laying the groundwork for future measures.

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