An amendment to the Enforcement Decree of the Act on Report of Real Estate Transactions, which temporarily defers the "buyer's obligation to move in" when a multiple-home owner disposes of a dwelling being rented out in an area overlapping a land transaction permit zone and a designated adjustment area, passed the Cabinet on the 24th. With the government signaling that the deferral of heavier capital gains taxes on multiple-home owners will end on May 9, this measure grants special exceptions to smooth sales by multiple-home owners who are willing to sell, guiding stabilization of the housing market.
President Lee Jae-myung presided over a Cabinet meeting at Cheong Wa Dae on the morning of the day and deliberated and approved 40 presidential decrees, 35 promulgations of laws, 1 bill, and 4 general agenda items that included these measures. For multiple-home owners, in adjustment areas newly designated last year, two more months than existing adjustment areas will be granted, and if the balance is paid within six months, the heavier capital gains tax will be waived. The obligation to move in for dwellings under rental will be eased for up to two years.
◇"Farmland is also a target of speculation; if you don't farm it, an order to sell"
The Cabinet also addressed tax and financial regulations related to farmland. Lee said, "These days, even if someone wants to return to farming or to the countryside, it's hard because (farmland is expensive). I hear in extreme cases it goes for 200,000 to 300,000 won per pyeong. To cut resettlement expenses, we fundamentally have to bring land prices down." Lee added, "I'm told even land left almost abandoned in mountain valleys is too expensive to farm, so we need to review farmland prices as well."
Lee also ordered a full-scale investigation into illegal acts. Lee said, "Even farmland has turned into a target of speculation," and added, "If necessary, a full count must be conducted with a large workforce. In particular, if someone buys land claiming it's for farming and then leaves it idle, I instructed the Ministers in the relevant ministries to separately review and report back on a plan to issue orders to sell. If omissions are confirmed, strictly discipline the responsible officials and local governments, and if the scale is large, have them punished for dereliction of duty." Lee then reiterated the commitment to normalize the market, saying, "The root of every problem is real estate."
The government approved on the day an amendment to the Enforcement Decree of the Income Tax Act that eases the criteria for tax-free pay for production workers. Currently, night shift allowances and the like receive tax-free benefits, and the gist is to expand this scope. In addition, the Cabinet passed an amendment to the Enforcement Decree of the Act on Restriction on Special Cases Concerning Taxation expanding the scope of dwellings eligible for monthly rent tax credit for large families, and an amendment to the Enforcement Decree of the Income Tax Act defining eligibility for tax credits for arts and physical education academy fees for lower elementary grades.
◇"Only 835 cases reported of illegal occupation in rivers and valleys? That makes no sense"
At the Cabinet meeting, Lee said regarding the status of cleanup of illegally occupied facilities in river and valley zones, "I can't believe the nationwide tally is 835 cases," and ordered each local government to conduct an additional investigation again. Lee added, "If omissions are found, strictly discipline the responsible civil servants and local governments, and if the scale is large, have them punished for dereliction of duty." Lee also called for nationwide inspections.
Valley cleanup is cited as a major achievement from Lee's time as Gyeonggi governor. Recently, after signaling the will to normalize the real estate market on social media, Lee has sent multiple messages to the effect that "it's easier than valley cleanup." On the morning of the day, Lee wrote on X (formerly Twitter), "Normalizing real estate is difficult, but easier than clearing illegal facilities in valleys or normalizing the stock market," and, addressing multiple-home owners and a single nonresidential dwelling, said, "Ownership is free, but you cannot avoid responsibility."