Seoul: The Cabinet has approved a revision to the enforcement decree of the Income Tax Act, ending a temporary exemption from heavy capital gains taxes for owners of multiple homes. The decision was made to address the ongoing issue of real estate speculation and stabilize rising housing prices.

According to Yonhap News Agency, the revised decree will impose a maximum tax rate of up to 75 percent on capital gains from the sale of homes owned by multiple-property holders in designated speculative areas. This change is set to take effect on May 9 and primarily targets areas within the wider capital region. The heavy taxation had been temporarily postponed under the previous President Yoon Suk Yeol administration and will now resume after nearly four years.

President Lee Jae Myung has stressed the importance of controlling housing prices and curbing real estate speculation, particularly in the greater Seoul area. To ease the transition for property owners, the government will offer a grace period ranging from four to six months in specific circumstances where tenants are currently residing.

The measure specifies a four-month grace period for properties located in Seoul's Gangnam and Yongsan districts. For newly designated speculative zones in other Seoul districts and parts of the surrounding Gyeonggi Province, the grace period will extend up to six months. This grace period applies if final payments are made or ownership registration is completed within the given timeframe.