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South Korea has removed the capital gains tax on the sale of homes worth up to 1.2 billion won, or about US $ 1 million for those who own only one house.
The Economy and Finance Ministry said the policy would go into effect on Wednesday.
Before the change, capital gains taxes came into effect when homes were sold for more than about $ 760,000 or 900 million won.
The new measure raised the threshold for paying taxes to just over $ 1 million based on market price.
But the tax exemption only applies to families who are sole owners of a residence and who have lived in the accommodation for at least two years.
As the threshold is raised, those who sell their homes for more than $ 1 million will also see their capital gains tax drop.
For example, if the value of a house went from $ 860 thousand to $ 1.6 million in the past five years, the seller would have had to pay over $ 100,000 in tax before the overhaul, but would now pay about 70- thousand dollars.
Last week, the National Assembly approved the tax revision, which was originally scheduled to come into effect from next year.
But the change is implemented about 20 days earlier than originally planned to deliver the tax benefits as quickly as possible.
The move was also intended to reduce confusion and increase market liquidity, as many single-family homeowners sought to delay the sale of their homes while waiting for this measure to take effect.
Eum Ji-young, Arirang News.
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