Kim Yongbum: "Special Long-Term Holding Deduction Will Be Maintained... No Issues Protecting Single-Home Owners Living in Their Residences"

Kim Yongbum, Policy Chief, Holds Press Briefing at Blue House on May 4
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Kim Yongbeom, policy chief at the Blue House, stated on the 4th regarding the Special Long-Term Holding Deduction (so-called “Jangteuk Deduction”), “It is absolutely not true that the deduction for actual residence will be reduced.” He also assessed that the end of the temporary suspension of the increased capital gains tax for multiple homeowners has led to an increase in real estate listings.

At a press briefing held at the Blue House press center that day, Kim emphasized, regarding the income tax law amendment bill initiated by Assemblyman Yoon Jong-oh of the Progressive Party—which centers on abolishing the special deduction—that “it has nothing to do with the government,” adding, “the special deduction will, of course, be maintained.”

Paek Jongmin, policy chief, is briefing on the meeting between President Lee Jae-myung and Demis Hassabis, CEO of Google DeepMind, held on the 27th at the Blue House press center. 2026.4.27 Yonhap News Agency

Kim continued, “Currently, both residence and ownership are eligible for a 40% deduction rate. Is this really appropriate for restructuring the housing market to focus on actual residence?” He clarified, “This is only a point that requires further consideration, and it is absolutely not true that the deduction for actual residence will be reduced.”

Kim also said that for those who inevitably become non-resident single homeowners due to work or education, “We will design the system so that there is absolutely no issue with protecting typical single-homeowners in the form of actual residence.”

Additionally, Kim evaluated that the end of the temporary suspension of the increased capital gains tax for multiple homeowners has resulted in an increase in real estate listings and a narrowing of asset inequality. He explained, “As of March 2026, statistics show that 2,087 Seoul apartments owned by multiple homeowners were sold,” adding, “This figure is 32% higher than the monthly average of 1,577 last year.”

Kim further analyzed, “When we examined who the buyers were, 73% were people without any homes,” noting, “This is an increase from the average of 56% in 2025.” He assessed, “It can be said that people without homes bought most of the properties that multiple homeowners put on the market.”

In particular, Kim pointed out that real estate prices in Gangnam’s three districts and Yongsan District fell first. He stated, “It is very unusual in the context of the Korean housing market and its history for these areas to decline first,” and added, “From the perspective of alleviating asset inequality, I believe this is showing a somewhat positive pattern.”

This content was produced with the assistance of AI translation services.