Koo Yun-cheol, Deputy Prime Minister and Minister of the Ministry of Economy and Finance, said the government would provide relief for unavoidable situations beyond the exception grounds for "nonresident single-homeowners" included in the real estate tax reform plan related to school enrollment and studying abroad.
Deputy Prime Minister Koo attended the National Assembly's Strategy and Finance Committee on the 20th and, responding to a question from Yoon Hoo-duk of the Democratic Party of Korea who said, "Haven't there been many comments about the real estate tax reform plan?," said, "There were a great many requests to expand the grounds for recognizing nonresidency."
Deputy Prime Minister Koo said, "If one is a nonresident for reasonable reasons such as school enrollment or studying abroad, we will recognize them as they are," and added, "However, if, in the course of implementation, a case falls under reasons that make nonresidency unavoidable, we will make sure the public faces no inconvenience regarding that part."
Earlier, the government announced in early this month a tax reform plan that would reduce benefits under the comprehensive real estate tax and capital gains tax for existing nonresident single-homeowners. The intent is to curb the "metropolitan area concentration in real estate" by shifting the benefit standard from "ownership" to a focus on "residency." However, the government set an exception rule that, for reasons such as school enrollment, job changes or transfers, treatment or care for illness lasting one year or longer, school transfers due to school violence victimization, overseas stays for study or work, and caring for parents, if a person moves residence, the "vacant period will be recognized as a residency period for up to three years."
However, many opinions submitted during the legislative notice period said this does not cover all unavoidable grounds for nonresidency. There is speculation that individual cases such as caring for grandchildren and relocating to rent in a desirable school district could be added as exception grounds.
Meanwhile, the legislative notice for 11 tax law amendment bills prepared by the Ministry of Economy and Finance ends on this day. After reviewing the comments received, the government plans to submit the amendment to the Cabinet meeting on Sept. 1 and to the National Assembly on Sept. 3.