Apartment complexes in Jamsil-dong, Seoul (Yonhap)
South Korea said Tuesday it will implement eased capital gain taxes on property sales for single-home owners this week amid growing public discontent over real estate-related tax burdens ahead of the presidential election.
Last week, the National Assembly approved a revision to the income tax act that calls for raising a threshold of capital gains tax exemptions on real estate sales for single-house owners to 1.2 billion won (US$1 million) from the previous 900 million won.
The government approved the act in a Cabinet meeting and will promulgate it on Wednesday, according to the finance ministry.
The move is aimed at dispelling uncertainty about the housing policy as more single-house owners are seeking to delay their home sales.
Public discontent over the government's housing policy has increased, as runaway home prices drove up tax burdens on home owners and raised costs for people who seek to rent or buy homes.
Housing problems and real estate taxes have become one of the most sensitive election issues ahead of the presidential election set for March next year. (Yonhap)