Reasons for Proposal
Recently, the number of foreigners buying real estate in Korea is increasing, and the number of Chinese nationals buying residential real estate is rising sharply. It has a negative effect on price stability in the Korean real estate market and the government’s real estate policies.
Other countries are also discussing the introduction of various regulations for the acquisition or transaction of domestic real estate by foreigners. In particular, some point out that capital gains tax exemption should not be provided to prevent foreigners from acquiring residential real estate for speculative purposes.
In this regard, this Act aims to not apply income tax exemption to the capital gain of foreigners who sell their residential real estate (Article 91 paragraph 3 newly inserted).
Major Provisions
Article 91
