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Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol mentioned on the 3rd that greenbelts might be partially removed or military areas used to increase housing availability. This came after the Ministry of Finance and Economy released the “2026 Tax Reform Plan,” which increases property taxes including the comprehensive real estate tax and transaction taxes like the capital gains tax, targeting non-resident high-value single homeowners and ultra-high-value single homeowners.

Deputy Prime Minister Koo appeared on KBS News that afternoon and stated, “With President Lee Jae Myung’s administration, we are preparing the most extensive supply strategies, including potentially easing restrictions on greenbelts and using areas close to subways or government-owned military sites.” He further mentioned, “We will be able to share this information with the public shortly.” This indicates that the supply measures will come after the tax reform plan, which was launched to stabilize the real estate market and make the tax system more logical.

Deputy Prime Minister Koo pointed out that the tax reform initiative excludes individuals who own a single home worth 2 billion South Korean won or below from the overall real estate tax, whereas those owning properties valued at 4 billion South Korean won or above (the top 0.4%) will be subject to increased taxes compared to the current level. On the matter of higher taxes for properties valued at 2 billion South Korean won or more, he mentioned, “The tax burden was too low relative to previous housing prices, so it has been adjusted to a more standard level.”

Deputy Prime Minister Koo also responded to criticisms that policy reliability had weakened because of the tax reform plan, which was revealed almost three months after the surtax was reinstated on May 10, 2026. This plan increases the capital gains tax rate for multiple homeowners in controlled areas by as much as 30 percentage points over the standard rate (6–45%). He stated, “There were opinions from multiple homeowners questioning, ‘How can taxes keep rising with ongoing surtaxes?’ We took public sentiment into account by offering a grace period.”

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