Korean Homeowners See Red Over Proposed Capital Gains Tax Hike: 'What About Stocks?'
A proposed bill to abolish the "long-term special deduction" (Jangteukgong) for real estate capital gains tax has sparked outrage among Korean homeowners, who feel targeted and question the fairness compared to stock market gains.
The "long-term special deduction" (Jangteukgong) is a significant tax benefit in Korea that reduces capital gains tax for homeowners who've held their properties for many years. The *jeonse* system, a unique Korean rental deposit system, is also a crucial part of the housing market, where tenants pay a large, refundable lump sum instead of monthly rent.
A proposed bill, reportedly from the progressive Jinbo Party, to scrap the "long-term special deduction" (Jangteukgong) for real estate capital gains tax has ignited a fiery debate online, leaving many homeowners feeling betrayed and furious. This deduction significantly reduces the tax burden for those who've held onto their properties for a long time, especially single-home owners (1-household 1-homeowner). The original poster expresses deep frustration, recalling how the government once encouraged people to buy homes instead of renting *jeonse*, only to now threaten a policy change that could drastically increase their tax bill if they ever sell or need to move.
The author questions the fairness of targeting real estate while seemingly giving a pass to stock market gains. "What's the difference between sitting on a house waiting for it to go up and sitting on stocks?" they ask, highlighting a perceived double standard. They also point out the construction industry's vital role in the domestic economy, arguing that such policies could harm more than just homeowners. With rising property prices and the potential phasing out of the *jeonse* system, many fear that selling their current home would make it impossible to afford another, trapping them in their current situation. This debate underscores a deep-seated anxiety among Korean homeowners about the stability and fairness of housing policies.
Korean Netizen Reactions
10For example, if someone bought an 82.5ใก apartment in Apgujeong Hyundai 3rd for 1.25 billion won in 2010, lived there for 15 years, and sold it for 5.5 billion won in 2025, their capital gains tax woulโฆ
My experience? Never trust the government when it comes to real estate. Doesn't matter if they're progressive or conservative. If they promise benefits, they'll retroactively take them away later. If โฆ
Real estate is always the enemy, stocks are good investments. That's the new normal. I don't get why stocks are 'good' though. If you're just chasing market gains and getting mad about capital increasโฆ
Jangteukgong is a system that reduces capital gains tax the longer you hold a property when you sell it. So just don't sell it, keep living there. It feels like they're distorting public opinion to maโฆ
Low chance of this actually happening. Separate point, but I do think it's the government's role in a capitalist system to encourage money to flow into stocks rather than real estate. (Speaking as a sโฆ
It's a bill proposed by the Jinbo Party, but calling them 'pro-government' (๋ฒ์ฌ๊ถ) is clearly intentional. I keep seeing articles and petitions against it popping up in various KakaoTalk group chats.
What's the legislative intent or purpose? I don't really get it. And the direction... hmm, I feel like there could be a better way. It's weird.
Is it a situation where you *have* to sell?
Even if it passes, won't it only apply to new purchases?
It's just a proposal from the Jinbo Party, they're good at putting on a show. Not all proposed bills pass.