Minister Kim Yun-duk of the Ministry of Land, Infrastructure and Transport offered a position on concerns about listings drying up following the end on the 9th of the temporary suspension of the capital gains tax surcharge on multiple-home owners, saying, "I think a popular sovereignty government will be different and has no choice but to be different." Kim also said the government is reviewing an exception to land transaction permits for nonresident single-home owners and others.
On the 10th, on social media X (formerly Twitter), Kim said, "These (listings freeze) outlooks are largely based on experiences with past governments," adding, "If so, will these historical experiences be repeated exactly this time? Over the long term, I think a popular sovereignty government will be different and has no choice but to be different."
The Minister said, "A popular sovereignty government has a different perspective and approach to real estate issues. Previous governments pursued real estate market stabilization policies while maintaining the basic framework of macroeconomic management in areas such as currency and finance," adding, "By contrast, the Lee Jae-myung administration is pursuing fundamental institutional reforms under the urgent recognition that, without removing the barriers to social mobility across income groups and regions—not merely from a real estate market stabilization perspective—Korea's future and integration cannot be collateralized. By completely redesigning the economic incentive structure in finance, taxation, and supply, we will create a grand shift from an economy that relies on unearned real estate income to a productive economic structure."
Kim added, "As the public confirmed during the push to reach KOSPI 7000 and in responding to the Middle East war crisis, the housing supply policy is also different. Just three months after launch, we released a plan to supply 1.35 million homes in the greater Seoul area, followed by the release on Jan. 29 of a plan to supply 60,000 homes focused on prime locations." Kim also said, "Above all, among the follow-up bills to provide legal and institutional backing, eight have been enacted so far, and 14 are awaiting placement on the plenary agenda," adding, "We aim to complete legislation before the end of the first half of the National Assembly session, while breaking down silos among ministries and more strongly marshaling whole-of-government capabilities so housing supply in places like Gwacheon and Taereung can move faster than ever."
Kim also said strong market-stabilizing measures are in effect, including stringent financial regulations and designating land transaction permit zones. In particular, "It is significant that, through the household debt management plan released jointly by related ministries on Apr. 1, we officially declared the separation of real estate and finance," adding, "Going forward, in '26 the household loans growth rate will be kept within 1.5%, and by '30 the ratio of household loans to GDP will be managed at around 80%."
The Minister said, "Conditions in global financial markets, including the bond market, are also markedly different. Unlike in the past, global bond yields are on an upward trend due to inflation stemming from the aftermath of the Middle East war," adding, "As a result, mortgage rates are rising compared with the start of the year, which is expected to constrain home price increases."
The Minister said, "A tougher enforcement regime to establish market order is in operation now more than at any time in the past," adding, "We will step up inspections and investigations, in cooperation with the Prime Minister's Office, the National Tax Service, and the Financial Supervisory Service (FSS), to determine whether there have been any illegal or irregular acts that undermine market order in real estate transactions, such as de facto gifts or false transaction reports."
Kim said, "Ahead of fundamental institutional reforms, from the standpoint of fairness in opportunities to sell, we plan to review an exception to land transaction permits for nonresident single-home owners and others." This is being interpreted as a measure to induce them to put their holdings on the market. Currently, in land transaction permit zones, transactions for actual residence are the principle, making it difficult to sell dwellings with tenants. The government is reviewing a plan to allow "sale with tenants in place" by granting a grace period for actual residence only for nonresident single-home owners. Kim also explained, "Led by the Ministry of Economy and Finance, we also plan to review, from the perspective of tax fairness, whether the permanent capital gains tax reductions granted to rental business operators are appropriate."
The Minister said, "Whether there is a capital gains tax surcharge is just one of countless factors that influence home price outlooks," adding, "If people judge that prices will fall, they will list properties no matter who tries to stop them, and if they think prices will rise, they will pull listings—this is a basic attribute of the asset market. Let the market and the public decide."
The Minister said, "The goal of a popular sovereignty government is firm. "Through sustained increases in both short- and long-term supply," we will steadily push policies for a housing market where end users can feel secure and for a country where people who work hard can have hope."