Feb 9 • 22:42 UTC 🇰🇷 Korea Hankyoreh (KR)

President Yoon: 42,500 public rental apartments in Seoul... Home prices may stabilize when properties are listed

President Yoon has emphasized the need to reduce tax benefits for registered rental property owners, arguing that their properties, if listed, may not significantly contribute to stabilizing home prices.

President Yoon Suk-yeol of South Korea has expressed a pressing need to reconsider tax incentives provided to registered rental property owners, particularly the exemption from capital gains tax. He pointed out that the rental properties held by these owners might not contribute to stabilizing the housing market if they are sold to evade the capital gains tax on multiple homes. Yoon made this statement following a related article discussing whether the proposed changes would actually aid in making housing more affordable.

Further, President Yoon highlighted that among the public rental housing, only 16% of apartments—approximately 42,500 units—are located in Seoul. He stressed that this number is significant and should not be downplayed. By questioning the intention behind the media's use of terms like "only" and “approximately,” Yoon indicated that there are specific biases in how the information is presented that could influence public perception on the housing crisis.

The policy for registered rental property owners includes various tax benefits provided they adhere to conditions like a rental price increase cap and a minimum rental period. Although these tax advantages diminish after the obligatory rental period, exemptions on capital gains tax could endure indefinitely. The President's commentary suggests a reevaluation of these ongoing benefits, questioning their necessity and arguing for a balanced approach that doesn't provide perpetual advantages to property owners who once registered as rental operators.

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