韩国副总理候选人李炯一在人事听证书面答复中称“重建中的非自住单套房难以直接认定为投机需求”，市场传出政府税制修订案中非自住长期持有特别扣除削减（2029年前分阶段取消）可能推迟或放缓

▲ AI PRISM* Personalized Economic Briefing
* Editor's note: AI PRISM (Personalized Report & Insight Summarizing Media) is an artificial intelligence-based personalized news recommendation and summary service developed with support from the Korea Press Foundation. It selects and provides six news items tailored to each reader type.
[Key Issue Briefing]
■ Is the non-occupancy taxation principle wavering: Uncertainty over the direction of differentiated taxation on owners of a single home who do not live in it has grown after Deputy Prime Minister nominee Lee Hyung-il said in written answers for his confirmation hearing that "it is difficult to conclude that a home undergoing rebuilding represents speculative demand simply because the owner has not lived in it." With the question of whether relocation within the same city or county will be recognized as a valid reason, there is also talk of deferring or slowing the schedule for cutting the long-term holding deduction for non-occupants, which is being phased in through 2029. Investors who own a single home they do not live in should watch developments in the related tax code revision bill closely.
■ Refund opportunity on jointly held homes: The National Tax Service said that from this year it will calculate in advance and inform married couples who jointly own a single home whether the comprehensive real estate holding tax special provision works in their favor, and that it will refund taxes overpaid in the past. Tax burdens diverge widely depending on the method chosen — applying for the special provision brings a 1.2 billion won deduction on the officially assessed price plus tax credits for age and holding period, while not applying gives the couple a combined 1.8 billion won deduction — so taxpayers should not miss the application and cancellation window from the 16th to the 30th of this month.
■ Rebuilding contractor map redrawn: As major builders increasingly pick and choose projects in the Yeouido and Mokdong rebuilding markets, Samsung C&T won the Mokhwa apartment complex (construction cost of 512.2 billion won) and is now seen as likely to be the sole bidder for the Sibeom apartment complex, a project worth 2 trillion won. In Mokdong, Hyundai Engineering & Construction, DL E&C and GS Engineering & Construction are securing major complexes, while Complex 7 (4,335 units) and Complex 14 (5,123 units) are drawing investor attention as several builders are named as potential contenders.
[News of Interest to Real Estate Investors]
Key summary: The possibility of easing differentiated taxation on owners of a single home who do not live in it has emerged after Deputy Prime Minister nominee Lee Hyung-il said in written answers for his confirmation hearing that it is "difficult to conclude" that non-occupied homes undergoing rebuilding represent speculative demand. Under the government's tax code revision bill, the long-term holding special deduction for non-occupants would be restructured to abolish the holding-period deduction by 2029 and grant a deduction of 8% a year, capped at 1 billion won, only when the owner lives in the home. There is now talk of deferring or slowing that reduction. If the comprehensive real estate holding tax is finalized as the government proposes, the calculated tax for an owner of a single home assessed at 3 billion won who does not live in it would jump by 4.291 million won to 12.038 million won next year. Investors who own a single home they do not live in should review their holding strategy depending on how National Assembly deliberations on the bill unfold.
Key summary: The National Tax Service will, from this year, calculate in advance and inform married couples who jointly own a single home whether the comprehensive real estate holding tax special provision benefits them, and will proactively identify and refund past overpayments. Those who apply for the special provision receive a deduction on the officially assessed price of 1.2 billion won followed by tax credits based on age and holding period, while those who do not apply receive a basic deduction of 900 million won each, or 1.8 billion won combined, and can choose whichever is more favorable. The tax agency estimates that about 5,700 taxpayers would benefit from applying for the special provision, while about 2,900 who have already applied would be better off canceling. Taxpayers should use the application or cancellation window from the 16th to the 30th of this month, and those who cannot decide during that period can still choose the more favorable method when filing the regular comprehensive real estate tax return in December.
3. "Let's Avoid Bloody Competition": Sole Bids Mount as Builders Pick Projects by Profitability
Key summary: After winning the Mokhwa apartment complex in Yeouido (construction cost of 512.2 billion won), Samsung C&T is now seen as likely to be the sole bidder for the Sibeom apartment complex, a project worth 2 trillion won, and the pattern of major builders staking out Yeouido rebuilding projects is hardening quickly. In Mokdong, Hyundai Engineering & Construction has secured Complex 10 (construction cost of 2.6135 trillion won) and DL E&C has secured Complex 6, while GS Engineering & Construction is seen as the front-runner for Complex 12 and Samsung C&T for Complex 13. Mokdong's Complex 7 (4,335 units) and Complex 14 (5,123 units), however, have drawn interest from several builders, making it a point to watch whether competitive bidding materializes. Because the choice of contractor affects project timelines and future presale prices, investors should closely monitor bidding trends at each complex.
[Reference News for Real Estate Investors]
4. "Restore Yeomchang Park First": Residents' Backlash Stalls Seoul's Only New Public Housing Site
Key summary: A briefing session on the development of Yeomchang neighborhood park in Gangseo District, the only new public housing site in Seoul included in the government's Aug. 13 rapid housing supply plan, collapsed amid a backlash from about 200 residents. The site was targeted for 1,000 units with construction set to begin in 2029, but residents are demanding the plan be withdrawn and the park restored, making setbacks unavoidable from the very first stage. Housing supply within Yongsan Park has likewise failed to reach agreement because of opposition from the Seoul city government and Yongsan District, leaving Seoul's base for new supply shaken on multiple fronts. If a reduction in Seoul supply materializes, the scarcity value of existing homes and rebuilding complexes could rise, warranting attention from a medium- to long-term investment perspective.
5. Burned by Project Financing Completion Guarantees, Trust Firms Turn to Redevelopment
Key summary: Trust companies hit hard by soured real estate project financing are cutting back on high-risk land trust deals and reshaping their business around acting as developers in redevelopment projects. Trust account loans at 14 trust firms stood at 9.5165 trillion won, up 6.1% from the end of last year, and borrowings rose 9.5%, while the outstanding balance of project financing loans tied to completion-guarantee land trusts fell from more than 10 trillion won at the end of 2024 to around 5 trillion won at the end of last year. Korea Land Trust is pursuing redevelopment projects covering 37,629 units across 32 sites in the greater Seoul area, and its borrowing-type urban redevelopment orders last year hit a record high since it entered the business. With intensifying competition for redevelopment work raising the prospect of lower fee rates, however, it is time to examine trust firms' financial soundness and business stability.
6. 11,000 Homes Go on Sale at 10 Complexes Including Cheonan I'PARK City 3 and 4
Key summary: In the third week of September, a total of 11,521 units (10,490 in general sale) at 10 complexes nationwide will open for applications. Cheonan I'PARK City Complexes 3 and 4 in Cheonan, South Chungcheong Province, and Ujeong District A2 in Uijeongbu, Gyeonggi Province, account for the bulk of the supply, while Hillstate Songpa The Grid in Seoul's Songpa District (1,393 units) is open to anyone aged 19 or older without eligibility restrictions. Model houses for The Sharp Bundang Highest near Jeongja Station in Seongnam, Gyeonggi Province, and Hillstate Godeok Elyst in Pyeongtaek, Gyeonggi Province, will also open in succession. With supply continuing to be centered outside the greater Seoul area, investors should assess the investment value of each offering based on proximity between home and work and the timeline for transport infrastructure improvements.
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