From BigGo Finance · BigGo Finance · · 1m 20s
South Korea Weighs Tax Relief for Rental Apartment Sales
South Korea plans extra tax breaks for rental apartment owners selling to public housing in overheating zones.
In brief
South Korea plans extra tax breaks for rental apartment owners selling to public housing in overheating zones. South Korea considers tax relief for rental apartment owners selling to public housing in speculative overheating zones to ease tenant instability and create public housing. Originally reported by BigGo…
South Korea Weighs Tax Relief
South Korea's government considers additional capital gains tax relief for rental apartment owners selling to public institutions in speculative overheating zones.
2026 Tax Reform Plan
The government scrapping rental business tax exemptions sets an end-2027 deadline for sales to induce disposals by landlords blocked by land transaction permit zones.
63,000 Apartments Affected
About 63,000 purchased rental apartments in speculative overheating zones had rental registrations automatically canceled from 2021 through 2026.
LH as Acquirer
Korea Land and Housing Corporation (LH) is a representative public institution for purchasing rental apartments in speculative overheating zones.
Sales Deadline
Homes must be sold by end of 2027 to qualify for capital gains tax exemption under the 2026 Tax Reform Plan.
Transaction Stalls
Rental businesses face stalled transactions due to land transaction permit zones and tenant concerns over jeonse and rent instability.
Public Housing Goal
The plan aims to convert units into public rental housing while minimizing housing instability for tenants.
The short version
South Korea considers tax relief for rental apartment owners selling to public housing in speculative overheating zones to ease tenant instability and create public housing.
