Vice Finance Minister: "Preparing Measures to Expand Actual Residence Obligation Grace Period to Ease Home Sales"

▲ First Vice Minister of Economy and Finance Lee Hyung-il

First Vice Minister of Economy and Finance Lee Hyung-il stated, "We are currently preparing additional measures to expand the grace period for actual residence obligations."

Appearing today (the 6th) on "Fact Bangatgan," an online policy promotion YouTube program hosted by the presidential office, Vice Minister Lee made the remarks while emphasizing, "We will do our utmost to ensure there are no inconveniences in selling homes."

Lee noted, "Some people say that when they tried to sell their homes due to the burden of holding taxes, they found it difficult to sell because the properties were bound by land transaction permit zones, making it hard to find buyers who would actually reside there while tenants are currently living in them."

Explaining the background for considering the expansion of grace periods for buyers' actual residence obligations, Lee mentioned that the government decided to temporarily defer buyers' actual residence obligations until the expiration of existing tenant lease terms when homeless buyers purchase homes with tenants by the end of this year, adding, "This is because there are views that even this is insufficient."

In addition, addressing criticisms that the latest real estate tax reform constitutes a tax hike, Vice Minister Lee stressed, "We did not reform real estate taxes for the purpose of increasing tax revenue."

Lee stated, "The goal is to establish a residence-centered housing market, enhance fair taxation and tax equity, and formulate a sustainable real estate tax system."

Lee elaborated, "The taxes collected in this manner are entirely transferred to local governments as local allocation tax on real estate, and local governments utilize them for purposes such as balanced regional development. The central government never uses the increased tax revenue."

Refuting criticisms that the government's tax reform plan—which grants tax benefits such as capital gains tax reductions for single-home owners aged 65 or older who dispose of metropolitan area housing and move to non-metropolitan areas—is intended to induce elderly populations to relocate to non-metropolitan regions, Lee countered, "It is by no means intended to induce migration."

Lee explained, "There were an overwhelming number of opinions that consideration must be given when senior citizens retire and move to non-metropolitan areas, and we accommodated this because these individuals are making a difficult decision."

(Photo: Yonhap News)

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