On the 6th, First Vice Minister of Finance and Economy Lee Hyeong-il stated, “We are currently preparing measures to further expand the grace period for the owner-occupation (requirement).” The government has decided that, through the end of this year, when a home with a tenant is purchased by a non-homeowner, the requirement for the buyer to reside will be temporarily deferred until the end of the tenant’s existing lease term, and he indicated the possibility of expanding this.

Appearing that day on the presidential office’s online policy-promotion YouTube program <Fact Mill>, the vice minister said, “Some people say that, because of the property tax burden, they tried to sell their home but, being subject to the land-transaction permit system, it is hard to find an owner-occupier, and since a tenant currently lives there, it is difficult to sell,” before making the above remarks.

He mentioned the decision to temporarily defer the owner-occupation requirement for buyers through the end of this year, explaining, “Because there are aspects for which this is still insufficient.”

The government also appears poised to introduce additional measures that broadly recognize reasons for ‘unavoidable non-residence’.

The vice minister said, “If, due to unavoidable circumstances, one cannot live there now but it was a home intended for residence, we will recognize it as residence,” adding, “For example, schooling or transfer to another school, employment or an overseas stay, illness, or caring for parents; beyond these, there are likely more issues and circumstances, so we are planning to recognize unavoidable reasons broadly.”

Addressing criticism that the government-announced tax reform plan amounts to a tax increase, he said, “We did not overhaul the real estate tax system to increase revenue,” and added, “The aim is to entrench a residence-centered housing market, enhance fair taxation and tax equity, and establish a sustainable real estate tax regime.” He explained, “The central government will never use the increased revenue; all such tax collections are transferred in full to local governments as real estate grants, and local governments use them for purposes such as balanced regional development.”

Separately from the government, ruling-party lawmakers representing Seoul constituencies also decided to closely examine the impact of the tax reform plan on the real estate market and on jeonse and monthly rent.

Representative Kim Young-bae told reporters that the Seoul chapter of the Democratic Party held a meeting at the National Assembly that day to discuss responses to real estate policy and discussed this.

Kim said, “Because there are many objections concerning non-resident single-home owners within the tax system, we discussed paying considerable attention to that area and concentrating monitoring.”

It was reported that, at the meeting, concerns were raised that the tax burden on owners of a single home who do not reside in it would increase under the reform plan.