Nat'l Assembly passes bills on tax breaks for housing transactions

The National Assembly on Tuesday passed a set of bills calling for tax breaks on housing transactions in a move expected to boost the slumping real estate market.

   Early this month, the government announced a package of stimulus measures, including the tax breaks, amid a protracted property slump in the country.

   According to government data, more than 73,000 new homes remained unsold as of the end of February. Meanwhile, the average price of South Korean homes dipped 0.26 percent from a year earlier in January, posting an on-year drop for 10 consecutive months.

   Under one of the bills, any household with a combined annual income of 70 million won ($63,400) or less will be completely exempt from the acquisition tax when they purchase a house worth no more than 600 million won. The transaction must be their first purchase of a home.

   The tax break went into force on April 1 and will be available until the end of the year.

   Under the other bill, people who buy homes worth up to 600 million won or are no bigger than 85 square meters will be exempt from capital gains taxes if they sell the property over the next five years.

   The purchase must have been made between April 1 and the end of this year. (Yonhap)