To tame the country's skyrocketing housing market, the South Korean government has jacked up the real estate tax for people owning more than one home.
Included in the latest anti-speculation measures unveiled on Friday, the ownership tax for multiple homeowners will now double to six percent from the previous three.two percent.
"Stabilizing housing for ordinary people is a top priority, the government has pledged to protect those who purchase homes for actually living in, root out speculative investment and come up with customized, appropriate measures."
In addition, it's going to be a lot more difficult for speculators to make profits through home purchases.
Starting next June, the capital gains tax will increase to 70 percent for those who sell their house within a year of purchase and 60 percent for sales within two years of purchase.
Tax benefits such as property tax reduction for home rental businesses will now also be dramatically reduced.
The latest measures also look to widen benefits for first-time buyers.
There'll be no acquisition tax when buying a house worth less than 125-thousand U.S. dollars.
The government will also create a task force with related ministries to increase the number of houses available for those who really need homes.
The bill to revise real estate taxes will be submitted to the National Assembly early next week.
Friday's measures came just a month after the administration's 21st set of regulations failed to put the brakes on the soaring local housing market.
Kim Dami, Arirang News.