The government has not yet decided whether to continue the temporary suspension of heavier capital gains taxes on multiple-home owners after May.
In the economic growth strategy for 2026 released on the 9th, the government did not mention the suspension of heavier capital gains taxes on multiple-home owners, deferring a decision.
Under the current system, the basic capital gains tax rate ranges from 6% to 45% depending on the tax base. However, when transferring dwellings in regulated areas, owners of two dwellings face an additional 20 percentage points, and those with three or more dwellings face an additional 30 percentage points. Including local income tax, the top effective tax rate for three-dwelling owners exceeds 80%. This heavier taxation structure was introduced in 2021.
Since 2022, the Yoon Suk-yeol administration has temporarily suspended the heavier capital gains tax on multiple-home owners by revising enforcement decrees. But the suspension ends on May 9 this year. Without separate action, the number of heavier-tax cases will rise sharply in Seoul and key areas of the capital region.
Until now, the government has announced extensions of the suspension of heavier capital gains taxes each year when releasing its policy direction. But the latest growth strategy omitted the relevant details. An official at the Ministry of Economy and Finance said, "Whether the suspension will end has not yet been finalized, and we are reviewing it internally," and added, "We will announce it separately once a decision is made."
Interpretations of the policy signal differ. Some say the government's failure to mention the heavier tax in this strategy adds weight to the possibility it will not extend the suspension further. Others say that, given the June local elections, the government could grant one more extension with an eye on public sentiment in the capital region.