Gov't to end exemption of heavy tax for multiple home owners in May, but mulls granting grace period

▲ Finance Minister Koo Yun-cheol speaks during a Cabinet meeting at Cheong Wa Dae in Seoul on Feb. 3, 2026. (Yonhap)

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Gov't to end exemption of heavy tax for multiple home owners in May, but mulls granting grace period

By Kim Eun-jung

SEOUL, Feb. 3 (Yonhap) -- Finance Minister Koo Yun-cheol said Tuesday the government will end an exemption from heavy capital gains tax for owners of multiple homes on May 9 but is considering granting a grace period for people who sell homes before the deadline.

Koo briefed the plan to President Lee Jae Myung during a Cabinet meeting, saying the move is aimed at the normalization of "abnormality and unfair practices" in the real estate market.

Under the proposal, the government would allow a grace period of up to three months for properties in Seoul's Gangnam districts and Yongsan, and up to six months for newly designated speculative zones, covering cases in which final payments are made or ownership registration is completed within those timeframes.

"(The government) should take into account real estate transaction practices and market realities, while working to minimize inconvenience to the public," he said.

Koo urged multiple home owners to make decisions in the remaining window, saying it as the "last opportunity" to avoid the heavier tax burden.

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.

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