South Korea To Stabilize Rental Housing Market Through Tax Cut

Amid the runaway housing prices, South Korea is rolling out measures to stabilize house rent.

Finance Minister Choo Kyung-ho, during his first government meeting on the property market, said benefits will be provided to landlords who raise rent by less than 5 percent.

The benefits include an exemption from capital gains tax on single homeowners selling their homes.

There is also special deduction for long-term property owners even if they have lived in their property for less than two years.

Also, to ease the burden on tenants, the tax credit rate on rent will be raised from the current 12 percent to 15 percent.

To get more people on the property ladder, the government will exempt first time buyers from up to 2 million won, or about 15-hundred U.S. dollars of acquisition tax.