Kim Yong-beom says gov't weighing cap on long-term capital gains deduction, exit path for multi-home owners

Kim Yong-beom, chief of the Cheong Wa Dae Policy Office, said Monday the government is reviewing whether to cap the long-term holding special deduction on capital gains tax and create an exit path for multi-home owners facing tighter property holding taxes, as part of a new real estate policy package.

Speaking in a CBS Radio interview, Kim said he expects the real estate forum chaired by Prime Minister Han Seong-sook to produce more focused discussions. "I'm hoping the conversations will narrow down a bit more," he said.

He said there are varying views on how to strengthen the holding tax and what threshold should define ultra-high-priced homes. "We are also gathering opinions on the criteria for ultra-high-priced homes," he said.

Kim added that a range of constructive proposals have emerged, including setting a cap on the long-term holding special deduction for capital gains tax, giving multi-home owners a way to offload properties if holding taxes are raised, and easing the tax burden on those who relocate to regional areas after retirement. "We are thinking about how to appropriately reflect these in policy," he said.

Asked whether the government is considering announcing new housing development sites, Kim said the president appears likely to hold a forum to review ways to expedite all related procedures — similar to the recent real estate forum — and to personally survey the Greater Seoul area by helicopter.

Cheong Wa Dae is also preparing measures to address the jeonse and monthly rent market. Ha Jun-kyung, the presidential secretary for economic growth, said the office "is preparing measures that can increase supply quickly in the short term."

Ha made the remarks in an SBS Radio interview, responding to criticism that the July 23 major real estate forum had not addressed jeonse and monthly rent. "Measures for jeonse and monthly rent are being prepared on multiple fronts and will be announced soon," he said.

He added that boosting supply is essential to stabilizing the rental market. "There are parts of the jeonse market where costs have risen because of jeonse fraud and trust issues. We are also preparing measures to address those," he said.

On the issue of monthly rent, Ha said young people in particular are struggling. "Things are being prepared on multiple fronts. If you watch, measures will come out little by little," he said.

Addressing complaints from first-time buyers — including young people and newlyweds — about loan restrictions, Ha acknowledged that expanding lending across the board would push up home prices. Still, he said any unreasonable or flawed aspects of the current loan system should be corrected. "The basic stance is that while we want to avoid loans that simply inflate demand, we should still take another look at loans that help activate supply," he said.