▲ Deputy Prime Minister and Minister of Finance and Economy Goo Yun-cheol
Deputy Prime Minister and Minister of Finance and Economy Goo Yun-cheol stated today (August 7) regarding calls to ease loan regulations that authorities are "contemplating targeted support to alleviate difficulties" and will announce measures soon.
During a phone interview on MBC Radio's "Kim Jong-bae's Focus" earlier in the day, when the host mentioned arguments that loan restrictions should be lifted because currently only cash-rich buyers can purchase properties in Gangnam, Deputy Prime Minister Goo responded, "We share the understanding that there is a need to ease measures protecting ordinary citizens and genuine homebuyers—for instance, young adults, newlyweds, and homeless ordinary citizens."
Deputy Prime Minister Goo added that additional housing supply and financial measures will be unveiled, stating, "We will increase housing supply as quickly as possible. Since apartments take some time, we will increase the supply of non-apartment housing."
Regarding the recently announced real estate tax reform proposals, he explained, "For homes that people actually live in, we have virtually reduced the tax burden for properties valued at 3 billion won or less. If someone buys a home for 3 billion won, lives in it for about 10 years, and then sells it, we have reduced both the holding tax and capital gains tax during that period."
Asked how the baseline for ultra-high-priced housing was set, he replied, "Since the tax burden is normalized a bit more at 4 billion to 5 billion won, we believe people are understanding it in that sense commonly used in the market."
He drew a line regarding the capital gains tax on houses in regulated areas for multiple homeowners, explaining that the basic tax rate will have additional points added sequentially: 5 percentage points (p) next year, 10 percentage points in 2028, and 20 percentage points from 2029 onward for two-home owners, while owners of three or more homes will see additions of 10 percentage points, 15 percentage points, and 30 percentage points, respectively. He emphasized that this is merely a temporary easing of heavy taxation and "not a deferral."
Deputy Prime Minister Goo explained that the temporary easing is "the result of reflecting public opinions asking for an opportunity for these individuals to adapt step-by-step because their holding tax burden is increasing."
He added that the government is continuously listening to public opinions regarding the tax reform plan and will reflect them in policies going forward if necessary.
Regarding whether additional measures will be introduced concerning single-stock leveraged exchange-traded funds (ETFs), which have sparked concerns about increasing stock market volatility, he noted that after raising the basic deposit requirement to 30 million won on July 31, "it is true that the herd phenomenon has eased somewhat," adding, "We plan to monitor the situation and respond accordingly depending on subsequent developments."
(Photo: Yonhap News)
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