Cabinet approves revision to law to resume heavier capital gains tax on owners of multiple homes
Published: 24 Feb. 2026, 14:34
Updated: 24 Feb. 2026, 19:15
![Apartment complexes are seen from a mountain in Jung District, central Seoul, on Feb. 23. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2026/02/24/dadb0057-e2d7-40bd-a87c-1d747e68eb30.jpg)
Apartment complexes are seen from a mountain in Jung District, central Seoul, on Feb. 23. [NEWS1]
The Cabinet on Tuesday approved a revision to the enforcement decree of the Income Tax Act that will end a temporary exemption from heavy capital gains taxes for owners of multiple homes.
Under the revision, a maximum tax rate of up to 75 percent will apply to capital gains from the sale of homes owned by multiple-property holders in designated speculative areas, mostly in the wider capital region, starting on May 9.
The heavy taxation, which was temporarily postponed under the previous Yoon Suk Yeol administration, will resume after nearly four years.
President Lee Jae Myung has emphasized the need to stabilize rising housing prices and curb real estate speculation, particularly in the greater Seoul area.
The government, however, will provide a grace period of four to six months for certain cases in which tenants currently occupy properties.
Under the measure, a four-month grace period will be given for properties in Seoul's upscale Gangnam and Yongsan Districts and up to six months for newly designated speculative zones in all other Seoul districts and some areas of Gyeonggi.
The grace period will apply to cases in which final payments are completed or ownership registration is finalized within the specified time frame.
Yonhap
with the Korea JoongAng Daily
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