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Govt' to 'rationalize' property tax system: finance minister

Published: 15 Oct. 2025, 15:02

Finance Minister Koo Yoon-cheol, center, speaks during a press briefing at the government complex in Seoul on Oct. 15. [YONHAP]

Finance Minister Koo Yoon-cheol said Wednesday the government will soon propose a comprehensive plan to "rationalize" the real estate taxation system, amid rapidly rising housing prices in the wider Seoul area.

"The government will devise a property tax reform plan after carefully considering factors such as encouraging capital flows into productive sectors, the principle of fair burden-sharing and public receptiveness," Koo said during a news conference to announce the third major housing policy package under the Lee Jae Myung administration.

Under the plan, the government designated all 21 remaining districts in Seoul as speculative zones, effectively placing all 25 districts of the capital under stricter regulatory status. Twelve cities in Gyeonggi that surround the capital were also newly designated as regulatory zones.

The finance minister said the government will examine tax adjustments, including property holding and transaction taxes.

However, he emphasized that the direction and timing of any tax reforms would be determined after a comprehensive review of potential market impacts and tax equity.

Market watchers say the move signals a policy shift toward higher property holding taxes, although the government is most likely to adopt a flexible approach to its implementation schedule.

While an immediate overhaul of the current tax structure is unlikely, a clear policy message may encourage property owners to list their assets, helping to stabilize the housing market.

Yonhap