Vice Minister Lee Hyeong-il of the Ministry of Finance and Economy said on the 6th that he is preparing to further expand the deferral of the owner-occupancy requirement.
The Vice Minister appeared on the Blue House's online policy-promotion YouTube program "Fact Mill" that day and said, "We will work to ensure there is no inconvenience in selling (dwellings)."
Earlier, the government decided to temporarily defer the buyer's owner-occupancy requirement until the end of this year when a person without a home purchases dwellings with a tenant, deferring it until the end of the tenant's existing lease term.
However, critics note that it is hard to find an owner-occupant due to regulation under the land transaction permit system, and there are some limits on selling if there is a tenant in the home being held.
The Vice Minister said, "That is because there are areas where (the government's deferral measure) is insufficient," adding, "Some people say they tried to sell due to the burden of holding taxes, but it is hard to find an owner-occupant because they are tied up by the land transaction permit system, and it is hard to sell because a current tenant is living there."
Addressing criticism that this real estate tax overhaul is a tax hike, the Vice Minister said, "We did not overhaul the real estate tax system to increase revenue," adding, "The aim is to establish a dwelling-centered housing market, enhance fair and equitable taxation, and create a sustainable real estate tax system."
He added, "All of the taxes collected in this way are transferred to local governments as real estate grants, and local governments use them for purposes such as balanced regional development," and "the central government will never use the increased revenue."
Regarding the government providing tax benefits such as capital gains tax reductions when a single-home owner aged 65 or older sells a Seoul metropolitan area dwelling and relocates outside the metropolitan area under this tax overhaul plan, he said, "This is absolutely not inducement to relocate."
The Vice Minister said, "There were many opinions that support is essential when older people retire and move outside the metropolitan area, and we accepted that," adding, "That is because they have made a difficult decision."