(LEAD) Gov't to offer 4- to 6-month grace period before ending tax benefits for owners of multiple homes

▲ This photo shows apartment buildings in Seoul on Feb. 12, 2026. (Yonhap)

▲ Jo Man-hee (C), a senior finance ministry official, speaks to reporters at the government complex in Sejong on Feb. 12, 2026. (Yonhap)

(LEAD) govt-property tax

(LEAD) Gov't to offer 4- to 6-month grace period before ending tax benefits for owners of multiple homes

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By Kim Han-joo

SEOUL, Feb. 12 (Yonhap) -- The government will grant a grace period of four to six months for owners of multiple homes ahead of the planned end of a temporary exemption from heavy capital gains taxes, the finance ministry said Thursday.

The temporary exemption will still end as scheduled on May 9, as President Lee Jae Myung has emphasized the need to stabilize rising housing prices and curb real estate speculation, particularly in the greater Seoul area.

The policy has prompted owners of multiple properties to sell their homes to avoid hefty taxes.

"All property sale contracts signed after May 9 will be subject to a heavy capital gains tax," Jo Man-hee, a senior finance ministry official, told reporters, adding that a grace period will be given depending on rental situations.

The ministry said the latest measures have been prepared to improve consistency between systems and minimize public inconvenience, reflecting the practical difficulty of selling homes currently occupied by tenants and the need to strengthen protections for renters.

Under the measure, a four-month grace period will be given for properties in Seoul's upscale Gangnam and Yongsan districts and up to six months for newly designated speculative zones in all other Seoul districts and some areas of surrounding Gyeonggi Province, the ministry said.

The grace period will apply to cases in which final payments are completed or ownership registration is finalized within the specified time frame.

For homes currently occupied by tenants, the government will temporarily ease owner-occupancy requirements under the land transaction permit system, the ministry said.

Many rental properties in South Korea operate under the "jeonse" system, in which tenants provide a large lump-sum deposit that is returned in full at the end of a minimum two-year lease.

Currently, capital gains taxes on real estate sales range from 6 to 45 percent. Owners of two homes in designated speculative zones face an additional 20 percentage points, while those owning three homes are subject to a 30 percentage-point surcharge on top of the base rate.

Housing prices are one of the Lee administration's key policy issues. Lee has pledged to stabilize the housing market, saying soaring home prices are forcing young people to abandon plans for marriage and childbirth.

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