Minister Kim Yun-duk of the Ministry of Land, Infrastructure and Transport offered a position on concerns raised about a potential lockup of listings following the end on the 9th of the grace period suspending heavier capital gains taxes on multiple-home owners, saying, "I think a popular sovereignty government will be different and has to be different." He also said authorities are reviewing an exception to land transaction permits for nonresident single-home owners and others.
On the 10th, on social media X (formerly Twitter), he said, "Such (listing lockup) projections are largely based on experiences with past governments," adding, "If so, will such historical experience be repeated exactly this time as well? Looking over the long term, I think a popular sovereignty government will be different and has to be different."
Minister Kim said, "A popular sovereignty government views real estate issues with a different perspective and approach. Previous governments pursued real estate market stabilization policies while maintaining the basic framework of macroeconomic management, including currency and finance," adding, "By contrast, the Lee Jae-myung administration is pushing fundamental institutional reforms under the urgent recognition that, without dismantling the barriers to social mobility across income classes and regions, Korea's future and integration cannot be collateralized. By completely redesigning the economic incentive structure—finance, taxation, and supply—we will create a grand shift from an economic structure reliant on unearned real estate income to a productive economic structure."
He continued, "As the public confirmed in the process of achieving KOSPI 7000 and 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," he said. He also said, "Above all, regarding the follow-up bills to legally and institutionally support this, eight have been enacted so far, and 14 are awaiting a vote in the plenary session," adding, "While completing legislation before the end of the first half of the National Assembly, we are breaking down interagency silos and mobilizing stronger pan-government capabilities so that housing supplies in Gwacheon, Taereung, and other areas can proceed faster than ever."
He also said tough market stabilization measures, including strong financial regulations and designation of land transaction permit zones, are being implemented. In particular, he said, "It is significant that, through the household debt management plan released jointly by relevant ministries on Apr. 1, we officially declared the decoupling of real estate and finance," adding, "Going forward, the household loans growth rate in '26 will be managed within 1.5%, and the ratio of household loans to GDP will be managed at around 80% by '30."
Minister Kim said, "Conditions in the global financial markets, including the bond market, are also markedly different. Unlike the past, global bond yields are on an upward trend due to inflation stemming from the Middle East war's impact," adding, "As a result, mortgage rates are rising compared with the start of the year, which is expected to constrain home price increases."
Minister Kim said, "A stronger enforcement system to establish market order than at any time in the past is also in operation," adding, "We will further strengthen 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 were any illegal or unlawful acts that undermined market order during real estate transactions, such as de facto gifts or false transaction reports."
He said, "Ahead of fundamental institutional reforms, we plan to review an exception to land transaction permits for nonresident single-home owners from the perspective of fairness in sales opportunities." This is interpreted as a measure to induce them to put the properties they hold on the market. Currently, in land transaction permit zones, transactions in principle must be for actual residence, making it difficult to trade dwellings with tenants. The government is reviewing a plan to allow "sales with tenants in place" by granting a grace period for actual occupation only for nonresident single-home owners. He also explained, "Led by the Ministry of Economy and Finance, we will look into the appropriateness, from a tax fairness standpoint, of the permanent capital gains tax reduction benefits given to rental business operators."
Minister Kim said, "Whether heavier capital gains taxes apply is only one of many 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 the basic property of the asset market. Let the market and the public decide."
Minister Kim said, "The goal of a popular sovereignty government is firm. "Through sustained expansion of supply in the short and long term," we will steadily pursue policies for a housing market where genuine end-users can feel secure and for a country where people who work hard can have hope."