The South Korean Government announced on 30 August 2013 that the tax rates on home purchases would be decreased in order to encourage a rise in transaction numbers.
An exemption from property acquisition tax was granted in April 2013, but the provision was only in force until the end of June 2013.
The Government is now prepared to cut the acquisition tax rate on homes valued at less than KRW600 million to 1 percent, from the current 2 percent. On the other hand, the tax on the purchase of homes valued at between KRW600 million and KRW900 million will remain unchanged at 2 percent, while the tax on those over KRW900 million will be reduced to 3 percent from the current 4 percent.
The measures still need to be approved by the National Assembly but they should come into effect on January 1, 2014. However the deadline could be brought forward if parliamentary proceedings are concluded in a shorter period.
