Koo Yoon-chul: "Expanding Housing Supply and Rationalizing Finance to Stabilize Jeonse and Monthly Rent Markets"

Koo Yoon-chul, Deputy Prime Minister and Minister of Economy and Finance, announced that the government will soon unveil plans to increase housing supply and rationalize housing finance in an effort to alleviate concerns in the jeonse and monthly rent markets following real estate tax reforms.

Appearing on SamproTV on August 9, Koo stated, "We will soon announce measures to expand housing supply and rationalize housing finance," adding, "Tax reform was disclosed first because there was a deadline to submit the bill to the National Assembly."

He also emphasized that expanding supply is the top priority for stabilizing the jeonse and monthly rent markets. Koo said, "We need to increase the real estate supply," and explained, "It doesn't have to be just apartments; in some cases, non-apartment types can be supplied more quickly."

Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul is attending the Emergency Economic Headquarters meeting and the Economic Structural Reform Ministers' Meeting held at the Government Complex Seoul in Jongno-gu, Seoul on August 6, 2026. Photo by Jo Yongjun

He added, "We will maximize the supply of non-apartment housing, utilizing leftover land and areas near subway stations, and the government will accelerate the provision of private or public rental housing," and noted, "Because there is a housing shortage in the Seoul metropolitan area, we will expand supply there as well."

Koo explained that this real estate tax reform is focused on reducing the tax burden for the vast majority of single-home owners, while normalizing the tax burden for high-priced properties.

Koo said, "98.9% of all homes have a market price below 3 billion won," and stressed, "For 98.9% of homes, the tax burden will be eased, while for the remaining 1.1%—the high-priced properties—taxes will be normalized compared to the past, so we ask for your understanding."

Regarding criticism from some quarters about a 'property holding tax bomb,' Koo refuted the notion and responded, "We've only normalized taxes for just over 1% of all homes." He added, "For homes under 3 billion won in market value, if you live there for about 10 years, your capital gains tax will also be reduced."

He also rejected claims that the government temporarily suspended the capital gains tax hike for multiple-home owners. Koo flatly denied this, saying, "That is not the case," and emphasized, "These are realistic, step-by-step measures."

The government resumed the heavy capital gains tax rates for multiple-home owners on May 10, which had been temporarily suspended for four years. However, under the latest tax reform, the elevated tax rates will be gradually reduced until 2028. Koo explained, "Starting in 2029, normal taxation will be fully restored."

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