On the 11th, it was learned that the government is reviewing a plan to ease the eligibility for acquisition tax reductions on newborn dwellings purchases from "within 5 years" of the birth date to "within 7 years." This is one of the 22 systems that President Lee Jae-myung mentioned on X (formerly Twitter) as examples when he said he would review whether to improve institutional disadvantages that young people may face due to marriage.
Currently, if parents who have given birth acquire dwellings with an actual transaction price of 1.2 billion won or less within 5 years of the birth date, the acquisition tax is reduced by up to 5 million won, including acquisitions made within 1 year before the birth date.
On this, a suggestion that "it is tight to buy a house within 5 years after having a baby" was reportedly submitted to the Office for Government Policy Coordination. In fact, there is a report by the Korea Research Institute for Human Settlements (KRIHS) that married households who had no dwellings at the time of marriage purchase dwellings an average of 13.1 years after marriage.
If the government eases the eligibility for acquisition tax reductions on newborn dwellings purchases to within 7 years of the birth date going forward, it can be seen as intending to provide benefits until the time the child enters elementary school (age 7).
To that end, the government is reviewing preparing an amendment to the Act on Restriction on Special Cases Concerning Local Taxation to include it in the local government tax system reform plan to be announced by the Ministry of the Interior and Safety at the end of this month.