Seoul: The Finance Minister, Koo Yun-cheol, announced that the government will terminate the exemption from heavy capital gains tax for owners of multiple homes on May 9. However, the government is considering offering a grace period for individuals who sell their properties before the deadline.

According to Yonhap News Agency, Koo disclosed the plan during a Cabinet meeting with President Lee Jae Myung. The initiative aims to address "abnormality and unfair practices" in the real estate market. The proposal includes a grace period of up to three months for properties located in Seoul's Gangnam districts and Yongsan, and up to six months for newly designated speculative areas. This grace period would apply to cases where final payments are made or ownership registration is completed within the specified timeframes.

Koo emphasized the need to consider real estate transaction practices and market realities while minimizing public inconvenience. He urged owners of multiple homes to act swiftly, describing it as the "last opportunity" to avoid the increased tax burden.

Currently, capital gains taxes on real estate sales range from 6 to 45 percent. Owners with two homes in designated speculative zones face an additional 20 percentage points, and those with three homes incur a 30 percentage-point surcharge on top of the base rate.